Malloy Looks To Exempt Some Cars From New Canaan Taxes

  • Comments (38)
All Connecticut cars valued at less than $28,500 would be exempt from local property taxes, under Gov. Dannel Malloy's proposed budget. Photo Credit: Alissa Smith, file photo

FAIRFIELD COUNTY, Conn. — Cars valued at less than $28,500 would be exempt from local property taxes under a budget proposal Wednesday afternoon from Gov. Dannel Malloy.

"Towns and cities will have the option of implementing the proposal on July 1, 2013," before statewide implementation in 2014, according to a statement from the governor's office.

Malloy's proposed two-year budget cuts nearly $1.8 billion from the current $43.8 billion budget. And according to the Connecticut Post, the revenue loss from the cars would be about $560 million a year.

The proposed exemption would provide relief to middle-class Connecticut families and would include both private and commercial vehicles, Malloy's statement says.

"In addition to lowering costs for state residents, the proposal will also lower costs to municipalities, who will no longer be responsible for collecting the tax," the statement said.

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    Comments

Comments (38)

Broad River:

Know what would be nice? It would be nice that if the people that own cars ( we're all broke, I get that we all understand the tax ' shell game 'to.) that would become exempt, took that money and fixed their burnt out lights, broken windows, dragging tail pipes / mufflers and all the other safety items that are not well maintained, balding tires, brakes, windshield wipers etc. Plow that tax savings back in to the vehicle! Stimulate local business

regnery:

I know that property taxes are assessed every year. The text of this article says, "Cars valued at less than $28,500 would be exempt from local property taxes under a budget proposal Wednesday afternoon from Gov. Dannel Malloy."

So if your car is assessed at $30K, would you pay property taxes (i.e., the mill rate) on the $1,500 over $28,500 or on the whole $30,000? If it's the later, then you can have a situation where a $28,000 car has $0 property tax but a $29,000 car has a $2,000 sales tax (or whatever the mill rate would dictate).

DavidA:

Not only will towns raise the mill rates to recoup the loss but what that means is all homeowners and property owners will be paying the car tax for those that rent. They won't pay anything. A great deal if you are a renter and a lousy one if you are in the shrinking middle class.

regnery:

Landlords will raise their rents to recoup the extra property taxes.

firebird400:

If Wilton cannot collect a car tax they will just raise the mill rate on other property to replace the loss of revenue. It's the same old game, as with the lower home values, you can't win, even if you sell your home. One way or the other, State and local taxes are driving residents out.. There are also a lot of hidden taxes, like fuel and utilities, phone service, and numerous others. Perhaps the state is counting on Amazon??. Blame the republicans?? The Democrats control the legislator. Lastly, don't die in CT, they get you that way also.

Queen ffctguitar:

I would just like to see the fair to go down on the wheels bus

beverly.lysobey:

There are many residents of Norwalk and throughout Connecticut who register their cars in other states to avoid the property tax. These tend to be the most expensive vehicles purchased by individuals who can most afford to pay the state taxes. Not only is it illegal, it is unfair to the rest of us.

Jim T:

hell yes! You save a lot of money! If you have a couple vehicles that adds up fast

Loveithere:

The tax on my 1973 classic car was $11. Such a silly tax. I have actually scaled back on expensive cars. I would love to not pay tax on my cars.

Ken P Jr:

They should just do away with the car tax altogether. Nobody should happy with ANYTHING Malloy has done to this point. Raising taxes one year and cutting them the next isnt evidence of a very intelligent person. Cutting expenditure AND cutting taxes is what we need. Not political charades like we see constantly from the left.

norwalkspends4:

More headwinds to economic recovery from liberals.

Lease a new, fuel efficient car? Pay a penalty.

OldSaddleBag:

You read my thoughts, robdyn... The Republicans actually are complaining about a tax reduction??? What gives??? The tax actually kept me from purchasing a new model because I didn't agree with it... So that hurts revenue, too... Actually, I was so frightened that our family would pay more in income taxes if Obama got elected (according to his proposals), I grudgingly supported the GOP even though I did not like the choice of candidates on offer (I came from an Eisenhower Rep family)... With the same income and deductions, the first IRS refund we received under the Obama administration was $3,000 higher than under Bush...

Bkind2day:

We have to make it easier to live here. Our young people graduate college and have to move out of state because they simply can't afford to stay. And yes, a $30,000 car IS a luxury. It's a year's salary for many so paying a yearly tax on it it a lot of money. Other states do without it so why can't we? There must be a better way.

Mr Norwalk CT:

GOV. MALLOY PROPOSES BALANCED BUDGET WITH NO NEW TAXES

“Even in difficult times – especially in difficult times – we have to keep investing in our future,” said the Governor.

In addition to cutting $1.8 billion from the current services budget, the plan is 5.8% lower than spending projections under the prior administration. The budget also fully utilizes generally accepted accounting principles, fulfilling a promise Malloy made two years ago.

Niikk:

Yet another Democratic tax break
The Governor’s tax relief package also includes reinstating the exemption on sales tax for clothing. The exemption will cover items under $25 beginning July 1, 2014, with a full restoration of the $50 exemption by 2015.

Queen ffctguitar:

Well I have an old piece of Junk Audi so I am glad for this. I bet it worth 100 bucks. Worst car ever made

norwalkspends4:

Didn't the liberals just give us the failed cash for clunkers program designed to get low value older gas guzzling cars OFF the road...? Now an incentive to keep your old gas guzzler ON the road and not trade it in??

Shifting the tax burden to "rich" people and their $29,000 cars rarely ends well.

Loveithere:

Are you calling my 2008 vw EOS a gas guzzler? I paid $19,000 and it gets 30 mpg. What a ridiculous statement you have made here!

norwalkspends4:

Cash for clunkers was designed not for cars made in 2008, but clunkers. Older, and generally less environmentally friendly vehicles.

Don't get your panties in a wad. Oh, wait, you're a liberal....too late.

right wing are wackos:

Actually the cash for clunkers is part of what saved the US auto Industry
Once again Thank you President Obama

norwalkspends4:

Cash for clunkers was a success?? And 'saved' the auto industry??

Good grief, son. There's a reason you democrats are called "sheep". Time to get your learn on.

Jim T:

And the liberals just blame and blame and blame and blame
People on gov handouts did not notice the extra $112 missing each pay check because of 2013 tax increase to every middle class working American
You know, the taxes Obama said were not going to happen? LMAO!

Tim T:

Thank You Democrat Malloy for lowering our taxes even while struggling with the debt that the Republican Rell left you with,. This is yet another example of how the Democrats always cut taxes for the middle class. The republican scum on the other hand raise taxes on the middle class while giving tax breaks to the oil companies

robdny:

Tim
You are 100 percent.
Your facts are correct..The republicans are actually the tax and spend ones. This is something that the intelligent Americans now see.

john.real.965:

Me like it.

lwitherspoon:

Lower taxes are great, but how much will this cost the City of Norwalk in lost revenue? Will the Governor replace that revenue? Seems doubtful when the state government itself is struggling to balance its books. So unless I'm missing something, it sounds like cities will be forced to either cut services or raise taxes on homes to make up the lost revenue from Malloy's proposal to eliminate car taxes.

kybrdplyr:

In another thread, you point out that the total loss in revenue amounts to about 5% of the entire Norwalk budget. Then you point out four different professions including teachers and fire fighters that you suggest would each need to take a 5% cut in salaries which would total a 20% budget reduction to make up for the deficit, rather than a quarter of the total 5%.
Now there is the fear tactic of some percentage of 5% coming from additional property tax revenues.

I think the loss to the City could be made up for by more efficient work - like getting complete packets to the City Council members in the appropriate time so meetings could be more productive on behalf of all Norwalkers.

We have been pursuing data available to Norwalk taxpayers at a pricey charge for over a week now for a small parcel and cannot seem to get it. Perhaps Miklave's efficiencies aren't such a bad idea to implement or at least consider since it seems at least 5% of Norwalk's budget could afford to be cut and efficiencies strengthened. I had never heard of a car tax until moving to CT and would be more than happy to forgo paying that bill.

kybrdplyr:

In another thread, you point out that the total loss in revenue amounts to about 5% of the entire Norwalk budget. Then you point out four different professions including teachers and fire fighters that you suggest would each need to take a 5% cut in salaries which would total a 20% budget reduction to make up for the deficit, rather than a quarter of the total 5%.
Now there is the fear tactic of some percentage of 5% coming from additional property tax revenues.

I think the loss to the City could be made up for by more efficient work - like getting complete packets to the City Council members in the appropriate time so meetings could be more productive on behalf of all Norwalkers.

We have been pursuing data available to Norwalk taxpayers at a pricey charge for over a week now for a small parcel and cannot seem to get it. Perhaps Miklave's efficiencies aren't such a bad idea to implement or at least consider since it seems at least 5% of Norwalk's budget could afford to be cut and efficiencies strengthened. I had never heard of a car tax until moving to CT and would be more than happy to forgo paying that bill.

kybrdplyr:

In another thread, you point out that the total loss in revenue amounts to about 5% of the entire Norwalk budget. Then you point out four different professions including teachers and fire fighters that you suggest would each need to take a 5% cut in salaries which would total a 20% budget reduction to make up for the deficit, rather than a quarter of the total 5%.
Now there is the fear tactic of some percentage of 5% coming from additional property tax revenues.

I think the loss to the City could be made up for by more efficient work - like getting complete packets to the City Council members in the appropriate time so meetings could be more productive on behalf of all Norwalkers.

We have been pursuing data available to Norwalk taxpayers at a pricey charge for over a week now for a small parcel and cannot seem to get it. Perhaps Miklave's efficiencies aren't such a bad idea to implement or at least consider since it seems at least 5% of Norwalk's budget could afford to be cut and efficiencies strengthened. I had never heard of a car tax until moving to CT and would be more than happy to forgo paying that bill.

Loveithere:

Hmmmm. Norwalk getting a 30% increase in school budget over two years so I am pretty sure there aren't any worries about that.

lwitherspoon:

Since you're so sure, can you tell me how much revenue Norwalk would lose from eliminating the car tax?

I presume when you say "30% increase" you're referring to the proposed increase in ECS funding. The proposed $1.7 million increase is long overdue, but according to Rep. Gail Lavielle, other state aid to Norwalk is being reduced to an extent that we don't know. So it's possible that Malloy's budget increases ECS funds, but reduces other aid, and ultimately the City of Norwalk winds up exactly where we were before. We might even end up BEHIND where we were before, depending on how much state aid is cut and how much revenue is lost from eliminating the car tax.

I support lower taxes, but it's odd to see a Governer interfering with a revenue stream on which cities rely, if that is in fact what's happening.

DavidA:

You are spot on. The devil is always in the details and you can be assured the politicians are not going to simply give up that kind of money without replacing it elsewhere. Not in this state. We've just not learned where it will come form yet.

sandy.smeriglio:

It's about time Malloy is thinking of the people....

Jim T:

Go Dan! I read it twice just to make sure I read it right. The car tax SUCKS. Even leasing, its not even my vehicle and I have to pay taxes on it?
He is the only democrat I voted for, only because I know some of his associates from Stamford.
So a democrat wants to get rid of a tax? I am still wondering if I read that correctly?

DavidA:

It is Connecticut's version of a luxury tax. Now a 30K car is a luxury!

regnery:

So is this going to be a cliff tax, or is the tax only going to apply to the value over $28,500? So if you have a car worth $30,000, do you pay taxes on $30,000 or $1,500? If it's the whole amount, isn't that going to put a massive hit on new car sales (buy a $30,000 car and pay $2,000 in taxes; but a $28,000 slightly used car and pay $0?).

RG of Mayo:

I think you're getting sales tax (i.e., on purchasing the car) confused with the personal property tax (i.e., the "gift" that keeps on giving).

They SHOULD kill the tax. CT for years had no income tax but they made up for it with lots of other stuff such as the personal property tax. When THE LIAR (aka Lowell Weicker) decided to ram the income tax down our throats it was supposed to be offset by getting rid of a lot of the nuisance taxes and fees. Of course the politicians never delivered that part of the bargain.

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