Connecticut House Bill HB05299

Connecticut 2020 Regular Session

• Introduced: 2/26/20
• Refer: 2/26/20

Caption

An Act Concerning The Motor Vehicle Mill Rate And Motor Vehicles Registered Out Of State.

Impact

This legislation is poised to have significant implications for municipal revenue generation, particularly in areas with a high number of out-of-state registered vehicles. By allowing local authorities to establish their own mill rates, the bill facilitates potential increases in tax revenue from non-resident vehicle owners, which could be used to support local services and infrastructure. Additionally, this change aligns with efforts to ensure that tax obligations are fairly distributed among residents and non-residents using local roads and facilities.

Summary

House Bill 05299 aims to amend the existing statutes regarding the motor vehicle mill rate, particularly focusing on vehicles registered out of state but subject to property tax in Connecticut. By enabling municipalities to set distinct mill rates for such vehicles compared to residential and personal property, the bill seeks to provide local governments with greater flexibility in taxation and assessment strategies. The proposed changes would take effect from October 1, 2020, allowing municipalities to implement the adjusted mill rates in subsequent assessment years.

Contention

While the bill has been introduced with the intention of enhancing local fiscal control, it may also lead to some contention regarding the fairness of taxing out-of-state drivers. Critics may raise concerns about the potential for higher tax burdens on certain vehicle owners, particularly if municipalities adopt significantly different rates based on local policy preferences. Additionally, the relationship between tax rates and vehicle registration could provoke debate among those advocating for equitable treatment of all vehicle owners, regardless of registration status.