Eliminating CT car tax would raise property assessment rates

HARTFORD — A bill that would eliminate car taxes but make up for the loss of local revenue by increasing the property tax assessments on homes and businesses was panned Monday by the two municipal lobbies.

The bill calls for phasing out property taxes on motor vehicles over a five-year period, except on rental cars, and increases the property tax assessment rate from 70 percent to 100 percent to offset the municipal revenue loss. The bill was one of 15 that was up for a Finance, Revenue and Bonding Committee public hearing.

Bills, including some that would impose a flat, statewide tax rate for all cars regardless of which town they’re registered in, have been raised in the past. A law passed several years ago sought to use a half percent of the sales tax to offset losses in towns that ended up losing money from lowering their motor vehicle tax mill rate. The theme is the same — that it is unfair that the same car is taxed at different rates depending on the municipality where it is registered.

During the recent gubernatorial campaign, Gov. Ned Lamont floated the idea of a single statewide rate for motor vehicle taxes as a fairer, more equitable way for all taxpayers.

Municipal leaders say that’s a great idea in theory, but wonder where they are going to make up for the lost revenue.

Harwinton First Selectman Michael Criss, testifying on behalf of the Connecticut Council of Small Towns, said: “shifting more than $850 million onto the backs of homeowners will overwhelm property taxpayers and devastate housing values throughout the state.”

“Eliminating this tax and increasing the uniform assessment rate, will shift hundreds of thousands of dollars in additional property taxes onto homeowners and businesses,”...

from News https://www.ctpost.com/local/article/Eliminating-CT-car-tax-would-raise-property-13806550.php