In 2022, the Connecticut General Assembly enacted a group of laws that changed the manner in which motor vehicles are assessed and taxed. The complete implementation of these statutes has been delayed in part due to various questions and concerns that arose around the new provisions. In a June 2024 special session, the legislature enacted the following additional statutory changes via Senate Bill No. 501, which Governor Lamont signed into law on July 1, 2024:
- Requires the Secretary of the Connecticut Office of Policy and Management together with the Department of Motor Vehicles to establish guidelines for local assessors to employ in determining the use of motor vehicles for property tax purposes.
- Adjusts the depreciation schedule to be used in assessing motor vehicles in a manner that produces higher taxable values.
- Gives local assessors the power to determine if modifications or certain “attachments” to commercial motor vehicles allow them to assess the vehicles as business personal property rather than pursuant to the rules governing motor vehicles.
- Restores the prior law which specified that registered motor vehicles are not to be included in annual declarations of business personal property.
- Appears to permit a taxpayer to only appeal the assessor’s determination of the manufacturers’ suggested retail price (MSRP) of the vehicle (the starting point for the calculation of the value) rather than the resulting “fair market value.”
- Allows municipalities to set a different mill rate for motor vehicles as compared to real and business personal property provided that it is no higher than the current motor vehicle cap of 32.46 mills. The new law specifically permits a zero mill rate for motor vehicles thereby permitting individual municipalities to effectively exempt motor vehicles from taxation.
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