Equalizing Connecticut’s car tax structure is picking up speed in the legislative session in Hartford. One of the proposals under discussion is taxing all owners of motor vehicles the same tax rate based on a state average, instead of local tax rates. For instance, Bridgeport’s mil rate is 42 and Greenwich’s is 11. CT Mirror reporter Keith Phaneuf has more:
For example, the owner of a car valued at $20,000 would have paid $1,485.80 in taxes in Hartford in 2013, but only $207.80 in Greenwich.
“That’s why it really stands out as shockingly inequitable,” Looney said.
The New Haven lawmaker has introduced a bill to equalize motor vehicle taxes.
The measure still is being developed, but Looney said there are two basic approaches lawmakers could take.
The first involves replacing local property taxes on vehicles with a state property tax, which would reflect the average rate in Connecticut. Currently that would be about 28 mils, which represents a tax of $28 for every $1,000 of a vehicle’s assessed value.
The state then would send those funds to cities and towns. Those with rates above average–roughly one-third of the state’s 169 cities and towns–would lose revenue, while the rest would gain or break even.
Full story here.