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Thursday, February 4, 2010

Providence Council to Consider Suing State Over Withholding Vehicle Tax Payments

The Providence City Council will consider a resolution that would authorize a lawsuit against the State of Rhode Island to recover motor vehicle tax reimbursements that were due the city on February 1, 2010, but have been withheld by the state, according to City Council Majority Leader Terrence M. Hassett. 

Hassett said that a resolution will be offered during tonight’s City Council meeting at 7:00 p.m., authorizing the council to engage an attorney in order to seek injunctive relief to order the state to distribute the tax payment that were due to Providence and other cities and towns on February 1st.

Hassett said current state law requires the state to distribute the funds and only a change in the law can prevent the payments.

"Like it or not, state law requires the payment," Hassett said. “We cannot choose which laws we will obey and which ones we will not. Cities and towns have budgeted on the approved state revenue,” Hassett added, “the General Assembly approved it and the Governor signed it. Therefore, the distribution must occur."