Task force looks at how to eliminate Connecticut’s vehicle tax

HARTFORD, CT (WFSB) - State lawmakers are looking at ways to eliminate car taxes.

Many feel Connecticut’s tax system is unfair because it relies on your zip code. But getting rid of it may not be that simple.

Few would disagree the state’s car tax system is fair, and there have been lots of discussions to fix it.

This latest plan would get rid of it, but what about the lost revenue?

If you have a car, you pay a car tax, and where you live determines how much you pay.

Not exactly fair if you live in Hartford, where you pay more than your neighbors in West Hartford.

This week a few state lawmakers met to form a task force and consider a proposal by Senator MD Rahman to get rid of the car tax altogether.

“The reason I introduced this, not just helping one group of people, 4 million people will benefit from this car tax,” said Rahman (D – Manchester).

Rahman said the price of a car and taxes prevent some from being able to buy a car.

Rahman, who is running for re-election, is hoping his proposal gets some attention.

But what about the revenue? Cities and towns collect about a billion dollars every year.

Rahman said the money families would save could give them more buying power, but that wouldn’t really help cities and towns.

House Minority Leader Vinnie Candelora said the current system does make those with more expensive cars pay more and that municipalities would be forced to find revenue from other places.

“If you eliminate car taxes you shift it all to property taxes and people who own homes would pay more. And renters don’t really pay property taxes directly and that may be why the car tax exists,” said Candelora (R- Minority Leader).

The car tax issue has been around for a long time and the big obstacle has always been the revenue and how to replace it.

But this task force is willing to give this a shot. It will meet again in November.

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