CT residents seeing higher tax bill after state tax cuts
(WFSB) - For months, the governor boasted more than half a million dollars in tax cuts.
One of the most anticipated cuts was car taxes.
But some people are seeing a higher bill, even with the cuts in effect.
Governor Lamont’s office said the cuts are still doing what they intended.
The vehicle mill rate still went down in dozens of towns and cities statewide.
What they say is erasing the savings for many is the vehicle’s valuation.
The reasons that went up is tied to reasons we’ve heard many times in the pandemic.
For months, Lamont and many others said to expect lower taxes.
Particularly car taxes, with the vehicle mill rate being capped at 32, down from 45.
“We have to make sure people who love our state can afford to stay in our state,” said Lamont.
But lower car taxes didn’t happen for everyone.
Here are two examples.
First in Simsbury, the mill rate went down nearly 6 mills.
But the valuation for this 2020 Volkswagen Jetta GLI went up nearly $2,000.
This driver is paying a little under $70 more this year because of it.
Now in Plymouth, the mill rate went down by 8.
But for this 2019 Ford Fusion, the valuation went up nearly $6,000.
This driver’s car tax is more than $76 more than last year.
“There was a lot of pent-up demand. There was also a shortage of manufacturers’ chips that go in the new cars,” said Bristol City Assessor Tom DeNoto.
DeNoto is also the President of the Connecticut Association of Assessing Officers.
He says rising vehicle prices are to blame, and if it weren’t for the tax cut, it would’ve been worse.
According to DeNoto, on average, several towns and cities saw a valuation increase of 25-percent.
“If you take into consideration the difference in the two mill rates, that’s about a 15-percent reduction between the 38 mill rate and the 32.46 mill rate. So if you add in the 25-percent increase in value, you could see how things could’ve been a lot worse,” said DeNoto.
The governor’s office agrees the tax cut is doing its job.
In a statement to us, they say they are working to curb valuations:
“The budget bill also changes the basis for vehicle assessment from market value to a depreciating schedule beginning in October 2023, which will provide more stability and predictability to taxpayers.”
Overall, 72 towns and cities lowered their vehicle mill rates because of the tax cut.
The governor’s office says it provided an estimated $100 million in savings for taxpayers.
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