Our taxes are high enough. According to this article the min. ( raised from 500.00 ) assessment would be 2500.00, not the tax amount owed.
That is correct. To clarify for those who are not Connecticut residents, current CT law establishes an "Early American" registration class and to qualify the vehicle must be a minimum of 20 Years old with some other very loosely enforced requirements. Additionally, the law also sets the maximum assessed value of "Early American" registered vehicles at $500. The local town collects Property taxes based on a mill rate, which is set by the town. In simplest terms, dividing the town's mill rate by 10 (moving the decimal point to the left by one) yields the percentage rate; for example, a town with a mill rate of 30 mills, the tax = 3.0% of the assessed value of the property. In the case of an "Early American" register vehicle, assessed value is $500 maximum, times the mill rate of 30, divided by 1000 = $15 property tax or ($500*3%).
Now vehicles that are not registered with "Early American" plates are assessed at a higher value. I don't know where the town tax collector comes up with those values, but it's not based on Blue Book or trade in value. They are coming up with that value from somewhere else entirely but they claim it's based on average retail value.
Anyhow, back in 2008, the city of Middletown closely examined the wording of the "Early American" registration law and realized the $500 maximum assessed value didn't apply to all "Early American" registered vehicles (the previously mentioned loosely enforced requirements). Specifically, section "14-1 a" of the general statutes defines a "Antique, rare or special interest motor vehicle" as a motor vehicle twenty years or older which is being preserved because of historic interest and
which is not altered or modified from the original manufacturer's specifications. Middletown started to require "Proof" that the vehicle qualified for the $500 assessment and was not modified. I don't know if proof is still being required, but it was last I heard. Luckily, not many other towns, if any, jumped on that wagon.
Getting back to the subject of this thread,
CT House Bill No. 5580 introduced earlier this year is
AN ACT ESTABLISHING A STATE-WIDE MILL RATE FOR THE TAXATION OF MOTOR VEHICLES AND AMENDING THE DEFINITION OF ANTIQUE, RARE OR SPECIAL INTEREST MOTOR VEHICLE. Specifically, it is an act to establish a statewide mill rate for
All motor vehicles, so the mill rate would no longer be set by the individual towns. Car owners in towns with a low mill rate would likely see an increase in the mill while owners in cities/towns with high mill rates could see a decrease in mills for motor vehicles. Additionally, sections of the bill also change the wording of the laws, raising the Maximum assessed value of "Early American" vehicles from $500 to $2500 and also increases the minimum age requirement from 20 to 30 years. Last action on Bill 5580, it was through committee, reported on by the office of Fiscal Analysis and was tabled for discussion in the House. But no action has been taken on it since being tabled on April 7th so it looks like it's currently stalled.
The report from the office of fiscal analysis sheds light on what the state thinks can be gained:
Fiscal impacts associated with (1) establishing a statewide mill rate for motor vehicles, (2) increasing the property tax assessment cap for antique, rare or special interest (henceforth “antique”) motor vehicles, and (3) changing the definition of an antique motor vehicle, are described below.
Statewide Mill Rate (Sections 1 – 2)
An analysis of the impact of instituting the bill's statewide mill rate program1, based upon 2009 grand list data (the most recent available), indicates that payments into the newly authorized Motor Vehicle Property Tax Account (the “Account”) would have been insufficient to support the mandatory discrepancy and bonus payments had the program been in place in that fiscal year. The aggregate annual amount remitted to the state would have approximated $40 million, while the calculated discrepancy and bonus payments would have approximated $81. 2 and $7. 4 million, respectively. Further analysis indicates that the amounts deposited would have been insufficient until the fourth year of implementation, holding all variables constant.
Aggregate and town-specific payments into and out of the Account in each of FY 13 – FY 18 would be impacted by the motor vehicle component of each municipality's net grand list and its local mill rate in each year, and the given year (payments to towns having higher than median mill rates would be phased-down by 20% annually). Any balance remaining in the Account on 12/1/17 would be transferred to the General Fund.
Antique, Rare or Special Interest Motor Vehicles (Sections 3 – 5)
Effective with the 2013 fiscal year, the bill (a) increases the property tax assessment cap on antique motor vehicles from $500 to $2,500, and (b) changes, from 20 years or older to 30 years or older, the age at which a motor vehicle qualifies as antique. 2 This results in the following fiscal impacts:
● A statewide increase in property tax revenues of at least $2. 5 million. This estimate is based upon an average increase of $1,950 in the assessed value of 40,800 antique motor vehicles older than 30 years of age; and by $3,250 for 7,800 motor vehicles older than 20 but less than 30 years of age, applying the 2009 median municipal mill rate1. Additional revenues would be collected in those communities (a minority) that currently apply the $500 assessment cap to vehicles older than 20 years that are not registered as antique; the number of such vehicles is unknown at this time.
● A one-time cost of $121,000 in FY 12 to the Department of Motor Vehicles (DMV) to recall and replace Early American plates issued to owners of motor vehicles model years 1981 through 1991. This estimate includes $4,000 for processing and mailing notices, and $117,000 for the manufacture of replacement marker plates. The cost per plate to DMV is $15. 00.
● A one-time potential revenue gain of $132,600 to the Special Transportation Fund from the $12 transfer fee and $5 plate fee charged to replace the recalled plates. This revenue gain would be expected to extend over FY 12 and FY 13. There are approximately 7,800 Early American plates assigned to vehicles model years 1981 through 1991.
● A sales tax revenue loss to the General Fund of less than $25,000. CGS Section 14-62b permits dealers and repairers to acquire motor vehicles for the purpose of dismantling and selling the parts for use in antique motor vehicles. There would therefore be a loss in sales tax revenue from the sale of motor vehicle parts as a result in the decrease in the number of antique vehicles.
basically, the 169 incorporated towns would share a reported state wide increase of 2.5 million in property tax revenue, but it will be pretty much a wash for the state budget. Considering the current situation with the "State" budget, I get the feeling this will be low on their priority list when they return from summer break.
