With state budget resolved, car tax differential comes to 4.59 mills

Published on Wednesday, 6 December 2017 14:54
Written by Erica Schmitt

Staff Writer

NEWINGTON - When the holiday season and 2017 come to a close, many residents will be asked to pay a small and unexpected tax.

Motor vehicle tax bills are typically mailed in June and due in full by July 1, but this was a special year. It was late October before the state finally passed its budget, leaving towns to collect car tax without knowing how it would be handled at the Capitol.

Newington’s bills went out in October, reflecting the previously-adopted tax cap of 32 mills. Come November, Gov. Dannel Malloy signed a new budget, bringing that cap to 39 mills.

Because the town’s mill rate is 36.59, car owners who paid their bills this fall now come up 4.59 mills short.

Newington Director of Finance Janet Murphy addressed elected officials about the issue at the Town Council’s last meeting. Councilors unanimously approved a resolution authorizing the differential bills to be issued.

“We’re charging motor vehicle taxes at the rate we should have taxed them at had the first state budget not reduced them,” Mayor Roy Zartarian said.

Bills will be due at the end of January.

Motor vehicles in Connecticut are taxed at 70 percent of their assessed retail value.

To determine your liability ahead of time, find out the retail value of your car and multiply it by point-seven. Multiply that number by the differential tax rate of 4.59 and divide the product by 1,000. For example, a $10,000 car will be taxable at a $7,000 value. At a rate of 4.59 mills, its owner is liable for about $32.

Some state leaders have proposed eliminating car tax altogether. None however, have determined a concrete way for towns to replace the revenue garnered by this levy. Opponents say doing away with motor vehicle tax would only shift the burden to residential and commercial property owners.

Erica Schmitt can be reached at 860-801-5097, or eschmitt@centralctcommunications.com.

Posted in Newington Town Crier, Newington News on Wednesday, 6 December 2017 14:54. Updated: Wednesday, 6 December 2017 14:56.