The phase out applies to all motor vehicles and trailers, including leased vehicles. Lessors of vehicles that pay excise taxes directly to municipalities shall provide lessees, at the time of entering into the lease agreement, an estimate of annual excise taxes payable throughout the term of the lease. In the event the actual excise tax is less than the estimated excise tax, the lessor shall rebate annually to the lessee the difference between the actual excise tax and the estimated excise tax. The motor vehicle excise tax phase out commences with the excise tax bills mailed to taxpayers for the fiscal year 2000. The excise tax phase out provides increased levels of assessed value reductions until the tax is eliminated.
Current exemptions remain in effect throughout the phase out period.
City and town and fire district reimbursement. Lost revenues must be determined using a base tax rate fixed at fiscal year 1998 levels for each city, town, and fire district except that the Town of Johnston's base tax rate must be fixed at a fiscal year 1999 level. Cities and towns and fire districts will not be reimbursed for these exemptions. Each city, town, or fire district shall submit final certified and reconciled motor vehicle levy information by August 30 of each year. Any adjustment to the estimated amounts paid in the previous fiscal year shall be included or deducted from the payment due October 20.