Nearly two months after the start of the fiscal year on July 1, about 42,000 car tax bills will go in the mail this week.

No, the city didn’t screw up. And, no, taxes aren’t going up.

In fact, about 21,000 motor vehicles are coming off the tax rolls, meaning there won’t be any tax bills for those cars. As for the vehicles still on the tax rolls, bills will show a 5 percent reduction over last year.

There’s more good news for Warwick car taxpayers – they will have until Sept. 30 to make a payment without incurring a penalty.

The developments resulting from General Assembly approval of House Speaker Nicholas Mattiello’s six-year plan to phase out municipal car taxes was heralded by Mayor Scott Avedisian.

“Now that the state budget debate has ended, the bill to offer car tax relief to taxpayers finally is coming into force,” Avedisian said in a release. “While the tax rate in Warwick is relatively low, especially for a large city, the car tax has been deemed the most hated tax, so any relief that is given will work to quell some of the disdain for this tax type. By reducing any tax, it allows the residents to use that money for other things, which will indirectly boost other sectors of the economy. We appreciate taxpayers’ understanding as this issue was resolved.”

The resolution didn’t come without hiccups.

When legislators adjourned without approval of the $9.2 billion state budget, Warwick and other municipalities questioned if the car tax relief plan would take affect this year. As passage of the state budget dragged out – the Senate eventually reconvened to approve the House budget that included the tax relief bill – the city went ahead and prepared to issue bills without the relief package. Fortunately, the bills never went into the mail, as the budget was enacted on Aug. 3. Bills reflecting the reduction in the tax are now ready for the mail.

City Tax Assessor Christopher Celeste said Wednesday the total collection amounts to $22,152,000, which is $2,090,000 less than what the city would have billed prior to the tax relief plan. Under Mattiello’s legislation, municipalities are to be made whole for car tax revenues lost because of the phase out.

“Supposedly we’ll be getting that back from the state,” Celeste said of the $2,090,000.

Celeste estimated 400 to 500 people have already made car tax payments based on last year’s bill. He doesn’t see that as a problem since their “overpayment” would be applied to upcoming installments. Of the total, he thought about 160 had made payments in full, in which case “they will all get their money back one way or another.”

Online car taxes have been updated.

Residents may remit payment amounts as shown on the individual stubs. The remaining taxes may be paid in installments on Oct. 15, 2017, Jan. 15, 2018, and April 15, 2018. With the exception of the first installment, taxes not paid by the due date are delinquent and will carry an interest charge from July 15, 2017 on the current unpaid balance at the rate of 1 percent per month. Interest on delinquent accounts will be assessed on Oct. 1, 2017, Oct. 16, 2017, Jan. 16, 2018 and April 16, 2018.

City Finance Director Ernest Zmyslinski said the delay in issuing of car tax bills and their payment did not adversely impact city cash flow, as real estate taxes and reserves carried the city. As for the $2,090,000 reimbursement from the state, Zmyslinski thought that would be forthcoming after a thorough review of the numbers.