Fears, speculation, and rumors have surfaced in coffee shops and on the blogosphere that Governor Donald Carcieri’s plan to withhold the 4th quarter excise car tax payment to cities and towns could get passed onto car owners.

Under the current system designed to phase-out the automotive tax, the state reimburses municipalities for the first $6,000 of assessed value. The car owner pays the rest of the tax bill to the municipality. And if the car owner’s vehicle is worth less than $6,000, there is no tax.

The phase-out also froze the rate.

Carcieri’s plan to withhold payments, which needs legislative approval, would cost local governments a collective $32.5 million. Municipal leaders are none too happy about it, and they’ve voiced their frustrations.

There is concern that local governments could send out fourth quarter tax bills to car owners if the state legislature goes along with Carcieri’s plan.

Municipalities, however, don’t have the power to unilaterally send out car tax bills, but they could gain that authority from the legislature.

A day after the plan was unveiled, a group of eight Mayors and City and Town Managers met at Johnston Mayor Joseph Polisena’s home to strategize how to deal with the proposal. It was rumored that the taxing plan was discussed.

Fortunately for car owners, interviews with some of the mayors who were at the meeting indicate that that’s not the case.

“My own personal preference would be that we don’t go back and start taxing that first $6,000 of value for every car,” said Warwick Mayor Scott Avedisian.

The policy, he points out, was created to make the state more attractive to businesses and citizens.

“What we need to do is have a much more rounded discussion of our comprehensive tax policy in the state,” said Avedisian.

Thanks to rental car agencies, Warwick has the most registered cars in the state. Yet the city only ranks 5th highest in revenue via the car tax because its tax rate, of $34.60 per thousand, is low.

“What the state’s policy does is say that if you keep your rates low, you lose twice,” said Avedisian.

Johnston Mayor Joseph Polisena agrees.

“What we’re saying is, bottom line, the General Assembly has to step up to the plate and say no,” said Polisena.

Amy Kempe, Governor Carcieri’s spokesman, said during a recent interview that the Governor doesn’t support tax increases to make up for cuts. What he does support, are initiatives to allow municipal leader to make their governments more efficient. Governor Carceiri proposed a list of mandates in his 2010 Fiscal Year Budget proposal that would have allowed municipal leaders to make their governments more taxpayer friendly. Among other things, the reforms would have eliminated things like minimum manning in police and fire departments, imposed 25-percent health care co-share premiums on municipal workers, and eliminated the Caruolo Act.

The General Assembly approved none of the reforms.

“These mayors and town managers need to really start putting some pressure on their legislators to approve these reforms,” said Kempe.

Polisena said it’s disingenuous to imply that he didn’t lobby for the reforms. Polisena pointed out that he attended a press conference in neighboring North Providence with Mayor Charles Lombardi in support of those reforms.

Polisena also said that while he’s been critical of Carcieri, he holds the General Assembly every bit as accountable.

“If any city or town has to send out a tax bill, let it be known that it came from the General Assembly,” said Polisena.