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Study: Ending car tax is affordable, depending on your priorities An affordability study of eliminating what remains of the car tax in Rhode Island was released late Thursday afternoon, kicking off what is expected to be vigorous debate over the issue in 2021. The R.I. Department of Revenue analysis was born out of a 2017 budget fight between the House and Senate over the car tax that resulted in that year s tax and spending plan being delayed by more than a month. It estimates how much reimbursing cities and towns to get rid of the car tax will cost over the next several years in relation to state revenues, but forgoes opining on the fiscal wisdom of such an investment. ....