Welcome! Login | Register
 

Carol Anne Costa: The Stockings Were Hung….—Well, it is Christmas morning 2014

Gencarella: What Side Are You On? Do Organizations & Consortium Members Really Support RhodeMap RI?—In the grant application submission for RhodeMap RI

WHJJ PODCAST: Governor-Elect Gina Raimondo Interview—WHJJ PODCAST: Governor-Elect Gina Raimondo Interview

30 Ways For Rhode Islanders To Give This Holiday Season—Helping those in need...

NEW: Mayor-Elect Elorza Announces Appointments to Senior Leadership Team—Mayor-elect Elorza announced appointments of Marisa O’Gara, Theresa…

PODCAST: 14 Biggest Blunders of 2014—PODCAST:14 Biggest Blunders of 2014

It’s All About Education: The Rise in Kindergarten Readiness Testing—Nationally, there is a growing trend towards assessing…

RI PUC Approves National Grid Electric Supply Rate Increase of 11.9 Percent—The Rhode Island Public Utilities Commission has approved…

Chef Walter’s Flavors + Knowledge: Struffoli on Christmas Day—December is the celebration of sweets, many of…

Biotechnology and The Tools for Treatment—The recent presence of the Ebola occurrences in…

 
 

NEW: Advocacy Group Launches Website Examining RI’s Estate Tax

Wednesday, April 02, 2014

 

Ocean State Advocates, a Rhode Island public policy organization, has announced the creation of RIEstateTax.com, a website dedicated to educating policy makers and the public about the negative impact of RI's estate tax also known as the Death Tax. The Rhode Island estate tax is applied to assets that exceed a threshold of $921,655 in 2014, creating an incentive for the elderly who have accumulated wealth to move assets and residency out of Rhode Island, according to the organization.

“Among the many marginal drivers that influence people’s decisions to move out of state,” said Bill Felkner, director of Ocean State Advocates, “we believe that RI’s Death Tax has a significant negative impact compared to its nominal revenue gains.”

Lost income due to outmigration

The website contains a research paper titled One is Too Many that examines IRS and Census data on the migration of people and wealth into and out of Rhode Island. That research found that Rhode Island has lost $1.3 billion in net income due to outmigration, 90% of which left after the estate tax became avoidable by moving. Of the seven marginal drivers examined in our report, the estate tax has the highest correlation with outmigration of wealth.

RIEstateTax.com also provides information on two surveys done with financial planners in Connecticut and Rhode Island. The Connecticut Department of Revenue Services asked financial planners if their clients moved in response to the CT estate tax, which has a $2 million threshold, and found that 53% of clients who moved did so “primarily” because of the estate tax and 77% did so “partially” due to the tax. An informal survey of members of the Financial Planners Association of Rhode Island found remarkably similar results with 55% and 72%.

“The research shows that people are moving or changing residency out of RI because of its death tax, and our state is losing over $100 million yearly in lost state and local taxes due to outmigration,” said Felkner. “For the relatively minor $30 million that we collect with the tax, legislators need to decide if its price is worth the cost.”

Economists J. Scott Moody and Dr. Wendy P. Warcholik authored the aforementioned study. Both econonomists have exerpeice with the Tax Foundation, a nonpartisan tax research group that aims to educate taxpayers about tax policy.

 

Related Slideshow: RI Communities with the Highest Tax Rates #39 - #1

How do the taxes in your community compare to other cities and towns in Rhode Island?

GoLocalProv has ranked communities from the least to the highest taxed on the basis of their tax rates, using newly released data from the state Division of Municipal Finance. The below slides list the tax rate per $1,000 in value for homes, commercial property, personal property, and motor vehicles for the 2014 fiscal year, which began last July and ends next June.

Along with the rates are examples of what taxes might cost a typical resident in each city or town. For residential taxes, this calculation is based on the current statewide median price for a single family home, which is $240,000. For communities with them, homestead exemptions are factored in using the latest available figures. For motor vehicles, the example used is a 2008 Honda Accord, valued at the maximum retail price of $15,150. The total cost of home and car taxes is then represented as a percentage of the median income for that community, offering a rough measure of how affordable taxes are for those residents as compared with the taxes in another city or town.

Data sources: the Rhode Island Division of Municipal Finance, the Rhode Island Association of Realtors, the Rhode Island League of Cities and Towns, the National Automobile Dealers Association, and the U.S. Census Bureau.

Prev Next

#39 New Shoreham

FY 2014 Tax Rates Per $1,000 in Value

Residential: $5.21

Commercial: $5.21

Personal Property: $5.21

Motor Vehicle: $9.75

Tax Cost for Residents

For a single family home valued at $240,000: $1,000.32

For 2008 Honda Accord: $147.71

Total Taxes as % Median Income: $1.29%

Note: Real property is assessed at 80 percent of value. This is reflected in the community's ranking.

Prev Next

#38 Little Compton

FY 2014 Tax Rates Per $1,000 in Value

Residential: $5.38

Commercial: $5.38

Personal Property: $10.76

Motor Vehicle: $13.90

Tax Cost for Residents

For a single family home valued at $240,000: $1,291.20

For 2008 Honda Accord: $210.59

Total Taxes as % Median Income: 1.56%

Prev Next

#37 Jamestown

FY 2014 Tax Rates Per $1,000 in Value

Residential: $8.75

Commercial: $8.75

Personal Property: $8.75

Motor Vehicle: $14.42

Tax Cost for Residents

For a single family home valued at $240,000: $2,100.00

For 2008 Honda Accord: $218.46

Total Taxes as % Median Income: $2.84%

Prev Next

#36 Charlestown

FY 2014 Tax Rates Per $1,000 in Value

Residential: $9.46

Commercial: $9.46

Personal Property: $9.46

Motor Vehicle: $13.08

Tax Cost for Residents

For a single family home valued at $240,000: $2,270.40

For 2008 Honda Accord: $198.16

Total Taxes as % Median Income: 3.56%

Prev Next

#35 Narragansett

FY 2014 Tax Rates Per $1,000 in Value

Residential: $9.80

Commercial: $14.68

Personal Property: $14.68

Motor Vehicle: $16.46

Tax Cost for Residents

For a single family home valued at $240,000: $2,352.00

For 2008 Honda Accord: $249.37

Total Taxes as % Median Income: 4.06%

Prev Next

#34 Bristol

FY 2014 Tax Rates Per $1,000 in Value

Residential: $12.80

Commercial: $12.80

Personal Property: $12.80

Motor Vehicle: $17.35

Tax Cost for Residents

For a single family home valued at $240,000: $3,072.00

For 2008 Honda Accord: $262.85

Total Taxes as % Median Income: 5.18%

Prev Next

#33 Portsmouth

FY 2014 Tax Rates Per $1,000 in Value

Residential: $14.53

Commercial: $14.53

Personal Property: $14.53

Motor Vehicle: $22.50

Tax Cost for Residents

For a single family home valued at $240,000: $3,487.20

For 2008 Honda Accord: $238.61

Total Taxes as % Median Income: 4.87%

Note: Motor vehicles are assessed at 70 percent of value. This is reflected in the community's ranking.

Prev Next

#32 Westerly

FY 2014 Tax Rates Per $1,000 in Value

Residential: $10.53

Commercial: $10.53

Personal Property: $10.53

Motor Vehicle: $29.67

Tax Cost for Residents

For a single family home valued at $240,000: $2,527.20

For 2008 Honda Accord: $449.50

Total Taxes as % Median Income: 4.93%

Prev Next

#31 South Kingstown

FY 2014 Tax Rates Per $1,000 in Value

Residential: $15.47

Commercial: $15.47

Personal Property: $15.47

Motor Vehicle: $18.71

Tax Cost for Residents

For a single family home valued at $240,000: $3,712.80

For 2008 Honda Accord: $283.46

Total Taxes as % Median Income: 5.39%

Prev Next

#30 Newport

FY 2014 Tax Rates Per $1,000 in Value

Residential: $11.71

Commercial: $16.23

Personal Property: $16.23

Motor Vehicle: $23.45

Tax Cost for Residents

For a single family home valued at $240,000: $2,810.40

For 2008 Honda Accord: $355.27

Total Taxes as % Median Income: 5.45%

Prev Next

#29 Middletown

FY 2014 Tax Rates Per $1,000 in Value

Residential: $15.71

Commercial: $20.87

Personal Property: $15.71

Motor Vehicle: $16.05

Tax Cost for Residents

For a single family home valued at $240,000: $3,770.40

For 2008 Honda Accord: $243.16

Total Taxes as % Median Income: 5.58%

Prev Next

#28 Exeter

FY 2014 Tax Rates Per $1,000 in Value

Residential: $14.72

Commercial: $14.72

Personal Property: $14.72

Motor Vehicle: $32.59

Tax Cost for Residents

For a single family home valued at $240,000: $3,532.80

For 2008 Honda Accord: $493.74

Total Taxes as % Median Income: 3.93%

Prev Next

#27 Tiverton

FY 2014 Tax Rates Per $1,000 in Value

Residential: $19.37

Commercial: $19.37

Personal Property: $19.37

Motor Vehicle: $19.14

Tax Cost for Residents

For a single family home valued at $240,000: $4,648.80

For 2008 Honda Accord: $289.97

Total Taxes as % Median Income: 7.75%

Prev Next

#26 Richmond

FY 2014 Tax Rates Per $1,000 in Value

Residential: $19.76

Commercial: $19.76

Personal Property: $19.76

Motor Vehicle: $22.64

Tax Cost for Residents

For a single family home valued at $240,000: $4,742.40

For 2008 Honda Accord: $274.40

Total Taxes as % Median Income: 6.33%

Note: Motor vehicles are assessed at 80 percent of value. This is reflected in the community's ranking.

Prev Next

#25 North Kingstown

FY 2014 Tax Rates Per $1,000 in Value

Residential: $18.80

Commercial: $18.80

Personal Property: $18.80

Motor Vehicle: $22.04

Tax Cost for Residents

For a single family home valued at $240,000: $4,512.00

For 2008 Honda Accord: $333.91

Total Taxes as % Median Income: 6.18%

Prev Next

#24 Coventry

FY 2014 Tax Rates Per $1,000 in Value

Residential: $18.66

Commercial: $22.49

Personal Property: $18.66

Motor Vehicle: $18.75

Tax Cost for Residents

For a single family home valued at $240,000: $4,478.40

For 2008 Honda Accord: $284.06

Total Taxes as % Median Income: 7.11%

Prev Next

#23 Cumberland

FY 2014 Tax Rates Per $1,000 in Value

Residential: $15.78

Commercial: $15.78

Personal Property: $28.86

Motor Vehicle: $19.87

Tax Cost for Residents

For a single family home valued at $240,000: $3,787.20

For 2008 Honda Accord: $301.03

Total Taxes as % Median Income: 5.62%

Prev Next

#22 Hopkinton

FY 2014 Tax Rates Per $1,000 in Value

Residential: $19.77

Commercial: $19.77

Personal Property: $19.77

Motor Vehicle: $21.18

Tax Cost for Residents

For a single family home valued at $240,000: $4,744.80

For 2008 Honda Accord: $320.88

Total Taxes as % Median Income: 7.80%

Prev Next

#21 Warren

FY 2014 Tax Rates Per $1,000 in Value

Residential: $18.67

Commercial: $18.67

Personal Property: $18.67

Motor Vehicle: $26.00

Tax Cost for Residents

For a single family home valued at $240,000: $4,480.80

For 2008 Honda Accord: $393.90

Total Taxes as % Median Income: 9.15%

Prev Next

#20 East Greenwich

FY 2014 Tax Rates Per $1,000 in Value

Residential: $22.90

Commercial: $22.90

Personal Property: $22.90

Motor Vehicle: $22.88

Tax Cost for Residents

For a single family home valued at $240,000: $5,496.00

For 2008 Honda Accord: $346.63

Total Taxes as % Median Income: 6.05%

Prev Next

#19 Burrillville

FY 2014 Tax Rates Per $1,000 in Value

Residential: $18.58

Commercial: $18.58

Personal Property: $18.58

Motor Vehicle: $40.00

Tax Cost for Residents

For a single family home valued at $240,000: $4,459.20

For 2008 Honda Accord: $606.00

Total Taxes as % Median Income: 7.35%

Prev Next

#18 Barrington

FY 2014 Tax Rates Per $1,000 in Value

Residential: $18.20

Commercial: $18.20

Personal Property: $18.20

Motor Vehicle: $42.00

Tax Cost for Residents

For a single family home valued at $240,000: $4,368.00

For 2008 Honda Accord: $636.30

Total Taxes as % Median Income: 5.07%

Prev Next

#17 West Greenwich

FY 2014 Tax Rates Per $1,000 in Value

Residential: $22.55

Commercial: $22.55

Personal Property: $33.85

Motor Vehicle: $19.02

Tax Cost for Residents

For a single family home valued at $240,000: $4,600.20

For 2008 Honda Accord: $288.15

Total Taxes as % Median Income: 5.81%

Note: Does not include rate for vacant land which is $16.07. Has homestead exemption.

Prev Next

#16 Foster

FY 2014 Tax Rates Per $1,000 in Value

Residential: $20.40

Commercial: $20.40

Personal Property: $28.03

Motor Vehicle: $36.95

Tax Cost for Residents

For a single family home valued at $240,000: $4,896.00

For 2008 Honda Accord: $559.79

Total Taxes as % Median Income: 7.00%

Prev Next

#15 Scituate

FY 2014 Tax Rates Per $1,000 in Value

Residential: $33.37

Commercial: $43.20

Personal Property: $39.75

Motor Vehicle: $30.20

Tax Cost for Residents

For a single family home valued at $240,000: $4,484.40

For 2008 Honda Accord: $434.65

Total Taxes as % Median Income: 6.01%

Note: Real property is assessed at only 50 percent of value and motor vehicles are assessed at 95 percent of value. This is reflected in the community's ranking.

Prev Next

#14 Glocester

FY 2014 Tax Rates Per $1,000 in Value

Residential: $21.24

Commercial: $24.14

Personal Property: $42.29

Motor Vehicle: $24.37

Tax Cost for Residents

For a single family home valued at $240,000: $5,097.60

For 2008 Honda Accord: $369.21

Total Taxes as % Median Income: 7.10%

Prev Next

#13 North Smithfield

FY 2014 Tax Rates Per $1,000 in Value

Residential: $15.86

Commercial: $17.57

Personal Property: $42.75

Motor Vehicle: $37.62

Tax Cost for Residents

For a single family home valued at $240,000: $3,806.40

For 2008 Honda Accord: $569.94

Total Taxes as % Median Income: 5.54%

Prev Next

#12 Lincoln

FY 2014 Tax Rates Per $1,000 in Value

Residential: $23.49

Commercial: $26.85

Personal Property: $36.89

Motor Vehicle: $30.66

Tax Cost for Residents

For a single family home valued at $240,000: $3,664.44

For 2008 Honda Accord: $464.50

Total Taxes as % Median Income: 5.57%

Note: Has homestead exemption.

Prev Next

#11 Warwick

FY 2014 Tax Rates Per $1,000 in Value

Residential: $19.79

Commercial: $29.68

Personal Property: $39.58

Motor Vehicle: $34.60

Tax Cost for Residents

For a single family home valued at $240,000: $4,749.60

For 2008 Honda Accord: $524.19

Total Taxes as % Median Income: 8.79%

Prev Next

#10 West Warwick

FY 2014 Tax Rates Per $1,000 in Value

Residential Rates:

  • For apartments with 6+ units: $35.26
  • For two to five family buildings: $35.26
  • For single family homes: $24.67

 

Commercial: $29.98

Personal Property: $39.00

Motor Vehicle: $28.47

Tax Cost for Residents

For a single family home valued at $240,000: $5,920.80

For 2008 Honda Accord: $431.32

Total Taxes as % Median Income: 12.70%

Note: For ranking purposes, the average of  the three residential rates was used.

Prev Next

#9 Cranston

FY 2014 Tax Rates Per $1,000 in Value

Residential: $22.84

Commercial: $34.26

Personal Property: $34.26

Motor Vehicle: $42.44

Tax Cost for Residents

For a single family home valued at $240,000: $5,481.60

For 2008 Honda Accord: $642.97

Total Taxes as % Median Income: 10.48%

Prev Next

#8 Smithfield

FY 2014 Tax Rates Per $1,000 in Value

Residential: $17.52

Commercial: $17.52

Personal Property: $61.06

Motor Vehicle: $39.00

Tax Cost for Residents

For a single family home valued at $240,000: $4,204.80

For 2008 Honda Accord: $590.85

Total Taxes as % Median Income: 6.54%

Prev Next

#7 East Providence

FY 2014 Tax Rates Per $1,000 in Value

Residential: $22.78

Commercial: $25.21

Personal Property: $56.25

Motor Vehicle: $37.10

Tax Cost for Residents

For a single family home valued at $240,000: $4,647.12

For 2008 Honda Accord: $562.07

Total Taxes as % Median Income: 10.54%

Note:  Rates are for FY 2013. Has homestead exemption.

Prev Next

#6 Johnston

FY 2014 Tax Rates Per $1,000 in Value

Residential: $28.75

Commercial: $28.75

Personal Property: $59.22

Motor Vehicle: $41.46

Tax Cost for Residents

For a single family home valued at $240,000: $5,520.00

For 2008 Honda Accord: $628.12

Total Taxes as % Median Income: 11.20%

Note: Has homestead exemption.

Prev Next

#5 Pawtucket

FY 2014 Tax Rates Per $1,000 in Value

Residential: $23.06

Commercial: $30.88

Personal Property: $52.09

Motor Vehicle: $53.30

Tax Cost for Residents

For a single family home valued at $240,000: $5,534.40

For 2008 Honda Accord: $807.50

Total Taxes as % Median Income: 16.00%

Prev Next

#4 North Providence

FY 2014 Tax Rates Per $1,000 in Value

Residential: $24.29

Commercial: $31.03

Personal Property: $69.41

Motor Vehicle: $41.95

Tax Cost for Residents

For a single family home valued at $240,000: $4,663.68

For 2008 Honda Accord: $635.54

Total Taxes as % Median Income: 10.55%

Note: Has homestead exemption.

Prev Next

#3 Woonsocket

FY 2014 Tax Rates Per $1,000 in Value

Residential: $34.56

Commercial: $39.81

Personal Property: $46.58

Motor Vehicle: $46.58

Tax Cost for Residents

For a single family home valued at $240,000: $4,976.64

For 2008 Honda Accord: $705.69

Total Taxes as % Median Income: 14.45%

Note: Has homestead exemption.

Prev Next

#2 Providence

FY 2014 Tax Rates Per $1,000 in Value

Residential Rates:

  • For owner-occupied residential property: $19.25
  • For non-owner-occupied residential property: $33.75

 

Commercial: $36.75

Personal Property: $55.80

Motor Vehicle: $60.00

Tax Cost for Residents

For a single family home valued at $240,000: $4,620.00

For 2008 Honda Accord: $909.00

Total Taxes as % Median Income: 14.21%

Note: For ranking purposes, the average of the two residential rates was used. 

Prev Next

#1 Central Falls

FY 2014 Tax Rates Per $1,000 in Value

Residential: $25.72

Commercial: $37.06

Personal Property: $73.11

Motor Vehicle: $48.65

Tax Cost for Residents

For a single family home valued at $240,000: $4,728.36

For 2008 Honda Accord: $737.05

Total Taxes as % Median Income: 14.43%

Note: Has homestead exemption.

 
 

Related Articles

 

Enjoy this post? Share it with others.

 
 
:)