MD Rahman

Sen. Rahman Leads Planning & Development Committee As Car Tax Elimination Proposal Receives Public Hearing

Today, State Senator MD Rahman (D-Manchester), Senate Chair of the Planning and Development Committee, led the Planning and Development Committee’s public hearing focused on legislation including his proposed bill, which would seek to eliminate the property tax on motor vehicles and seek mechanisms to ensure towns and cities receive necessary and needed funding.

“This bill is the start of a larger conversation that I hope sparks new ideas for the current vehicle property tax,” said Sen. Rahman. “The vehicle property tax is regressive in its current form, and can add prohibitive costs to the budgets of many residents. By seeking a more progressive form of tax, we can ease the cost burden that vehicle property taxes levy on seniors, who are already struggling with bills; our young residents, who can better focus on their education and building their careers; and our workforce, who will have one fewer cost barrier toward moving to, or remaining, in Connecticut. I’m hopeful we can continue having conversations about this important issue and move closer toward a solution amicable to us all.”

Senate Bill 497, “An Act Eliminating The Property Tax On Motor Vehicles And Concerning Mechanisms To Replace The Resulting Loss Of Revenue,” would seek to replace the property tax on motor vehicles with alternative revenue streams including a potential licensing fee on landlords and/or an annual fee on revenue from certain insurance policies. It’s intended to start a larger conversation on the motor vehicle tax, which is regressive in its current form; vehicles are subject to local property tax depending on municipalities, and due to differences between municipalities, a driver in Hartford could pay more than three times what a driver in Greenwich could pay.

A number of constituents testified in support of the legislation, including senior citizens concerned about friends and colleagues moving to other states due to more promising economic conditions and residents concerned about rising costs who noted that cars are not just luxuries but necessities in many parts of Connecticut.