Car owners get a break New state budget caps tax rate on automobiles at 32 mills

The new state tax package approved Wednesday night has one provision that will make car owners in more heavily taxed cities and towns so happy, they might even want to drive around the block a couple of times to celebrate.

Beginning with the tax year that starts July 1, motor vehicles taxes will be capped at 32 mills regardless of where you live in Connecticut, even in a place like Bridgeport that has a mill rate of 42.2.

"In places like Westport, the taxes on your car amount to almost nothing," said state Sen. Ed Gomes, D-Bridgeport. "But in Bridgeport, people are paying hundreds. So this is definitely a good thing."

The new arrangement means a Bridgeport car owner with a $15,000 car -- and with an assessed value of $10,500 -- will see taxes drop to $336 from $443.

"This long-overdue car tax relief is great news for hard-working Bridgeporters," said Mayor Bill Finch. "Thanks to Gov. Malloy and state leaders for their dedication to making this happen and continuing to help us make Bridgeport an even better place to live, work, and raise a family."

Beginning with the 2016-17 fiscal year, which starts July 1, 2016, cities and towns must cap the mill rate for motor vehicles at 32 mills, then cut the rate to 29.36 mills after that, saving car owners even more. The money cities and towns will lose as a result of the drop in car tax revenue will be offset by additional state sales tax revenue.

Cities and towns with mill rates below these caps aren't affected by the new arrangement. The new system was sought by Gov. Dannel P. Malloy.

It is particularly important to Hartford, the city with the highest tax rate by far at 74.29 mills, and where that same $15,000 car sees an annual $780 tax bill.

More Information If you're car is worth $15,000 and it's assessed at $10,500, this is what you'll save in ...

Bridgeport: $107.10

Ansonia: $69.30

Derby: $39.27

Bethel: $1.15

Newtown: $13.75

Seymour: $21.42

Stratford: $38.16

Trumbull: $1.69

Hamden: $83.26

Hartford: $425.15

Waterbury: $219.24

Torrington: $144.38

New London: $63.00



The reaction was a little more muted in towns like Fairfield, whose mill rate of 24.4 means it won't be affected by the new plan.

"I'm very concerned when the state is changing the rules of the game on something that should not be bothering the state, which is town revenues," said Fairfield First Selectman Michael C. Tetreau, who, like Malloy, is a Democrat. "I think that they should leave the town revenues alone, and I have to wonder where they are going with this."

First Selectman Pat Llodra of Newtown, a Republican, said she is happy to see the new arrangement.

"It's always good when we have something that reduces taxes," she said. "The one complaint I always hear is that taxes in this state are too high."

Newtown car owners will see a little relief -- about $13 for a car assessed at $10,000.

A car's assessment is based on 70 percent of the average retail value of the vehicle, as stated by the National Automobile Dealers Association Guide.

Here's where it gets a little complicated for tax assessors, because one 2013 Chevrolet Malibu isn't the same as another 2013 Malibu, even with the same number of miles.

A loaded 2013 Malibu 2LT with 25,000 miles, leather, sunroof, premium sound system and all the other toys has a listed value of $14,600. But a stripped-down 2013 Malibu LS with the same number of miles is valued at about $1,600 less.

"That's why we have to use the vehicle's VIN to determine how much it's worth," said Milford Tax Assessor Dan Thomas.

As for the mileage, Thomas said car owners can ask their local assessor to figure that into the calculation if they drive more than the usual number of miles, which is assumed to be 15,000 per year.

"Then about 20 percent of the vehicles don't have a listed price," he said. "These are oddball vehicles -- trailers, farm tractors, that kind of thing. So we have to check on those individually."

Connecticut has 169 cities and towns, but there are 283 different taxing districts thanks to a hodgepodge of volunteer fire departments, boroughs, garbage collection arrangements, sewer districts, neighborhood associations and so forth.

These subdistricts base their mill rates on the parent town, and add a few more mills cover their expenses.

Cities and towns in the region with mill rates above the 32 mill threshold include Bridgeport, Stratford, Trumbull, Ansonia, Seymour, Derby, Bethel, Newtown and Hamden.

In all, 37 of the state's 169 municipalities have mill rates above 32 according to the state Office of Policy and Management.

jburgeson@ctpost.com; 203-330-6403; http://twitter.com/johnburgeson