Derek Slap

SEN. SLAP JOINS SENATE PASSAGE OF LEGISLATION TO STUDY THE POTENTIAL REPEAL OF THE MOTOR VEHICLE PROPERTY TAX

Today, State Senator Derek Slap (D-West Hartford) joined the Senate’s passage of legislation creating a study of the impacts of a potential repeal of the state’s motor vehicle property tax. The bill, which passed by a unanimous 36-0 vote, would establish a task force which would study potential effects of a repeal of that tax.

“The car tax is not only a nuisance and adds to the high cost of living in Connecticut, it is rendered unfairly and inequitably,” said Sen. Slap. “Of course, eliminating it – something I want to see happen – is not easy because we do not want to simply shift higher municipal taxes to homeowners and businesses. I’m pleased we are going to conduct a comprehensive study, with the goal of identifying ways to eventually get rid of the car tax.”

Senate Bill 497, “An Act Eliminating The Property Tax On Motor Vehicles And Establishing The Motor Vehicle Property Tax Revenue Replacement Account,” would establish a task force to study the feasibility of repealing the motor vehicle property tax and what options are available to replace resulting lost municipal revenue. The task force will look at how such a decision would impact municipal budgets and review possibilities that could replace lost revenue.

The task force would include representatives of tax reform organizations, organizations supporting residents ages 50+, municipal leaders, insurance carrier officials, the secretary of the Office of Policy and Management, the Commissioner of Revenue Services and members of the Planning and Development and Finance, Revenue and Bonding Committees. The task force would report its findings by the end of January 2024.

State Senator MD Rahman (D-Manchester) proposed this legislation out of a desire to find improvements for residents struggling under high costs. The motor vehicle tax is regressive in locale and can add to high costs of vehicle ownership, putting additional pressure on taxpayers. As one example, due to local property taxes and mill rates differing significantly between different communities, a vehicle owner in Hartford can pay more than three times what a vehicle owner in Greenwich can pay each year.

In testimony submitted in favor of the legislation, State Senator Herron Keyon Gaston (D-Bridgeport) noted that economically distressed municipalities are directly vulnerable to the motor vehicle tax’s financial burdens, noting that the most vulnerable residents in his community struggle with its costs amid other significant issues. Testimony from state residents in support of the bill cited its possibility to provide financial relief amid rising inflation.

The bill previously passed the Planning and Development Committee by a 14-7 vote on March 22. It heads to the House for further consideration.