The Office of Policy and Management provided Assessors with guidance based on recent legislation including Public Act 22-118 and June Special Session Public Act 24-1. Excerpts from that document were used in the creation of this article.
Effective with the October 1, 2024, Grand List, Assessors will utilize the Manufacturer Suggested Retail Price (MSRP) of your vehicle and apply a statutory depreciation schedule to calculate the depreciated value of your vehicle.
The depreciated value will then be multiplied by the statewide assessment ratio of 70%, producing the assessed value of your vehicle for taxation.
The assessed value of your vehicle will automatically decrease annually according to the depreciation schedule. Your vehicle will be assessed at no less than $500 for taxation purposes at any time.
Depreciation Schedule pursuant to Section 12-63 of the CT General Statutes:
The MSRP will be provided by the Department of Motor Vehicles (DMV) if it is available. When unavailable, the determination of the MSRP shall be the responsibility of the Assessor in consultation with the Connecticut Association of Assessing Officers.
Previously, Assessors used the JD Power (NADA) clean retail value to calculate motor vehicle assessments. During the COVID pandemic, used and new motor vehicle values skyrocketed, and residents saw their tax bills increase. This went against the notion that cars are a poor investment that lose value ever year. The legislature implemented this new valuation method to ensure that doesn’t happen again.
Additionally, Section 12-81(82) of the CT General Statutes has been adopted so that:
- Any snowmobile, all-terrain vehicle or residential utility trailer, provided such property is exclusively for personal use is exempt for assessment years commencing on or after October 1, 2024.
- A utility trailer is defined under Section 14-1 as a trailer designed and used to transport personal property, materials or equipment, whether or not permanently affixed to the bed of the trailer.
- While still required to be registered with the Department of Motor Vehicles, these types of vehicles will be treated as personal possessions and no longer subject to local property taxation.
This new methodology also impacts the assessment appeals process. Board of Assessment Appeals pursuant to Section 12-117a of the CT General Statutes:
- Motor vehicles are assessed based on MSRP without factors such as high mileage, salvage vehicles, and rebuilt titles.
- The only grounds for appeal for a taxpayer is if the Assessor did not base the assessment from the vehicle’s MSRP.
- Vehicle owners may appeal the MSRP determination to the Board of Assessment Appeals at their next successive meeting.
These changes will impact tax bills starting in July 2025.
The 2024 Supplemental Motor vehicle process is also changing which may yield a different billing period. Once the process is defined, an article will be published to explain the process.
As always, if you have questions, feel free to reach out to the Assessor’s Office at 860-668-3866. The office is open Monday through Thursday 8:00 am to 4:30 pm and on Friday from 8 a.m. to 1 p.m.