NEW: ACLU Calls for Fairer Car Value System

NEW: ACLU Calls for Fairer Car Value System

The Rhode Island ACLU is calling for a new formula to assess “presumptive value” of automobiles.

The assessment process has taken on particular significance in light of a recent state law change that has substantially increased both the size of the car tax that can be imposed and the number of previously exempt cars that are now subject to the tax.

State law used to explicitly require the Commission to take other factors into account, such as the retail prices that were advertised in Rhode Island newspapers. When the Commission failed to do so, the ACLU successfully sued the agency. However, in 1998, the General Assembly amended the law to the way it exists today, which does not mandate consideration of any factors other than the book value. Although the law does call on the Commission to “duly consider” “other information concerning average retail prices” as it “deems appropriate,” the agency has regularly failed to consider anything other than the regional book “clean retail value.”

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

Until this year, cities and towns were required to exempt the first $6,000 of a vehicle’s value when calculating tax bills. Now, however, they need only exempt the first $500 in vehicle value, and many communities have taken advantage of that opportunity in order to raise revenue.

The state Vehicle Value Commission is required by law to consider, and hold a public hearing on, its methodology on an annual basis. This year’s public hearing is taking place on October 27th, prompting submission of the ACLU’s testimony. A copy of the ACLU’s testimony is available online at www.riaclu.org.