By EMMA BARTLETT

In the FY 2023 state budget, Governor Dan McKee included a plan for eliminating Rhode Island’s car tax, which the state has been phasing out for the past five years. McKee’s proposed $13 billion budget passed the House Finance Committee in an 11-3 vote Thursday which included the car tax elimination.

Cranston City Treasurer David Capuano said the idea for the car elimination is great for the state, and for Cranston residents it is a great relief considering the times everyone is in and dealing with costs due to inflation.

He noted that while the proposed car tax elimination has passed the House, it still has to go to the Senate. Should the car tax be eliminated, Capuano said individuals will still have to pay any delinquent taxes – which are any outstanding balances an individual has.

Capuano offered an example of what happens with outstanding balances. Someone might have a car tax from 2015 or 2017 that has an outstanding balance which has not been paid. When the individual goes to the DMV, they will not be able to register their car until that balance has cleared.

Capuano said people still have to pay their car tax bill for this year. However, should the car tax elimination be approved, individuals will not have to pay next year. Capuano said if the car tax elimination passes, the city will try and get word out next year that way people know whether or not they have to pay the bill and people are not calling City Hall wondering why they didn’t receive a bill.