Sep 14, 2013
02:37 PM
Connecticut Politics

Conversation to Eliminate Car Tax to be Resurrected by Committee

Conversation to Eliminate Car Tax to be Resurrected by Committee

Photo posted on Speaker Sharkey's Twitter

Speaker Brendan Sharkey at a press conference.

House speaker Brendan Sharkey is hoping to resurrect a plan that fizzled during the last legislative session to eliminate the state's motor vehicle tax.

Sharkey re-established the Municipal Opportunities and Regional Efficiencies Commission at and a news conference Thursday, laid out the goals for the legislative session. Among those goals is to create a plan to eliminate the motor vehicle tax. The goal of MORE is to find ways for municipalities to cooperate on a regional level.

"Potential efficiencies and savings from regionalism are starting to be realized, but MORE's mission must continue if we are to truly reduce the property tax burden – which is the ultimate goal," Sharkey said in a news release. "Elimination of the ultra-regressive, universally unpopular motor vehicle tax, further municipal mandate relief, and more regional approaches to the delivery of services – particularly in the area of public health and social services - is the direction we must head."

In the last legislative session, Gov. Dannel P. Malloy revealed a budget that would have eliminated the tax for vehicles valued at less than $28,500. One reason was the lack of a plan delineating how municipalities would make up the lost revenue. An alternate plan to phase out the tax over several years and another one to create a single statewide motor vehicle tax rate also failed to gain traction.

The state’s Office of Fiscal Analysis estimates that municipalities would lose more than $632 million if the car tax were eliminated. MORE wants to find a way to replace the revenue.

While many town officials who argued against the elimination of the tax agree with Malloy that it needs to be changed, they said the tax would need to be replaced by another stream of revenue or property taxes for residents would increase dramatically. Others argued that the shift from car tax to property tax was a much fairer way to collect taxes. 

Click here for a map dispalying the car tax rate for each town.

Read more about the press conference from here



Conversation to Eliminate Car Tax to be Resurrected by Committee

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