The City of Newport announced via a press release today that they are mailing fiscal year 2021 (July 1, 2020, through June 30, 2021) Motor Vehicle Tax bills on December 28, 2020.
Taxpayers will be able to pay their annual taxes in four payments prior to June 30, 2021. The payment due dates are January 30, 2021, February 28, 2021, March 31, 2021, and April 30, 2021.
The City Manager’s office says that Vehicle Tax bills are normally mailed in July with the Real Estate Tax bills. The State of Rhode Island is phasing out motor vehicle tax bills and replacing local revenue with State Aid. The phase-out is dependent on the State of Rhode Island annual operating budget and general laws.
This year the state budget adoption was delayed until December because of concerns about COVID-19 costs and potential additional federal aid.
The City delayed the preparation of the Motor Vehicle Tax bills until after the State of Rhode Island adopted the fiscal year 2021 budget approving the next portion of the phase-out. In accordance with state laws, the motor vehicle phase-out in FY2021 sets the assessed value of a vehicle at 80 percent of the clean retail value. The City also excludes $6,000 of value on every vehicle.