Delnicki: Towns will Lose Out on Car Tax Proposal

HARTFORD- State Representative Tom Delnicki (R-14) voted against a proposal permitting municipalities, like South Windsor to end the taxing of motor vehicles without a way to make up the lost revenue other than increasing the local property tax on residential and business homeowners.

“I fully support the concept of getting rid of the car tax, but the proposal today DID NOT resolve how the towns would be made whole with the loss of the millions of local tax dollars,” said Rep. Delnicki. “For example, South Windsor would need to find between $9 Million and $10 Million in additional revenue. Where is that coming from? South Windsor businesses? South Windsor homeowners?”

The legislation, Senate Bill 1445 An Act Authorizing Municipalities to Exempt Motor Vehicles from Property Taxation, which would authorize municipalities to exempt motor vehicles from property taxation and transition the municipal revenue loss resulting from such exemption by phasing in an increase in the uniform assessment rate applicable to real property and personal property other than motor vehicles.

The bill was voted favorably out of the Planning and Development Committee Friday, March 21st.

Statewide the property tax on motor vehicles generates approximately $1 billion each year in local revenues – revenues which are relied upon to fund critical services, including education, public safety, infrastructure, and public works.

Connecticut is more reliant on property tax revenues to fund local services, including education, than most other states in the nation.