Lt. Governor Bysiewicz, Middletown Mayor Ben Florsheim and Middletown Officials Praise Governor Lamont's Motor Vehicle Tax Cut Proposal
(MIDDLETOWN, CT) – Today, Lt. Governor Susan Bysiewicz joined Middletown Mayor Ben Florsheim and other Middletown officials to highlight the impact of the Governor’s tax cut proposal. The proposal includes a series of tax cuts that would provide approximately $336 million in relief for Connecticut residents.
One facet of the proposal would lower the mill rate cap on motor vehicle property taxes from 45 mills to 29 mills and reimburse local governments for the resulting revenue impact. A 29-mill cap on all motor vehicles would provide property tax relief for over 1.7 million vehicles in 103 towns and cities, including 20 of the 25 distressed municipalities. This would continue to apply to passenger, commercial, and combination vehicles.
“This proposal would be helpful not only to the families of Middletown, but to businesses here as well,” said Lt. Governor Susan Bysiewicz. “This proposal would benefit businesses that rely heavily on commercial vehicles and the transportation of goods. They will see relief with their car taxes, which will be money they can reinvest into their companies. This tax relief will be an economic driver for local businesses big and small.”
Along with the capping of mill rates, Connecticut residents could see the restoration of full eligibility for the property tax credit beginning in income year 2022, expanding the credit to all adults in the state. Currently, those 65 and older or those with dependents qualify.
If passed, the proposal would restore eligibility of the property tax credit to all households within income limits and would boost the credit from $200 to $300. This is estimated to have a direct impact on 1.1 million residents.
“The fact that we have a property tax on cars in Connecticut is a relatively unique to our state,” said Middletown Mayor Ben Florsheim. “More so than that is the way that the car tax impacts our community due to the way it is currently structured. Right now, if you are in Middletown and drive a Honda Civic, Ford F-150 or whatever vehicle you own, you’re paying more in property taxes on that car than some of the wealthiest towns in our state. Now is the time to help out our working and middle-class people and families by capping these rates.”
“We want to make sure that the value of [property and cars] are valued consistently and equitably across the board,” said Middletown Tax Assessor Damon Braasch. “Due to issues with the pandemic and supply chain issues [motor vehicle values] have risen by over 25% or more. The capping of the mill rate will help to offset that dramatic increase of motor vehicle values and keep taxes at a relatively stable amount. Otherwise, with the inequity in taxes are on local mill rates, we must assess vehicles the same whether we are in Hartford, Glastonbury, Greenwich or Middletown.”
“That value is still going to be the same, no matter where that vehicle is located. We are performing equitable valuations, but the difference is each municipality has its own mill rate and those rates can vary dramatically based on the size of the budget and the size of the municipality.”
Governor Lamont said that he is proposing the tax cut package as the state is projecting an operating surplus of $1.48 billion, which will enable a significant reduction in the one-time revenues built into the enacted budget and will continue to ensure the state has a strong rainy-day fund.
For Immediate Release: Monday, March 7, 2022
Contact: Chelsea Neelon