Connecticut House Bill HB05420

Connecticut 2023 Regular Session

• Introduced: 1/17/23
• Refer: 1/17/23

Caption

An Act Establishing A Credit Against The Personal Income Tax For Motor Vehicle Property Taxes Paid And Concerning The Assessment Of Motor Vehicles.

Impact

In addition to introducing a tax credit, the bill seeks to control the assessment practices of municipalities regarding motor vehicles. It proposes that no municipality shall assess a motor vehicle at a value higher than the previous tax year. This measure aims to stabilize the tax liabilities for vehicle owners, preventing sudden increases in property taxes due to arbitrary re-evaluations by local governments.

Summary

House Bill 5420 aims to provide financial relief to taxpayers by establishing a credit against the personal income tax for motor vehicle property taxes paid to municipalities. Specifically, this legislation proposes that individuals can claim a credit equal to half of the amount of motor vehicle property taxes they have paid. This initiative is designed to alleviate the financial burden on vehicle owners and to promote fairness in taxation as it relates to personal vehicular assets.

Contention

The bill may generate some points of contention. Supporters argue that the proposed tax credit and assessment limitations are necessary steps towards a more equitable taxation framework. They claim it will help relieve financial pressures on citizens amidst rising costs of living. However, opponents may express concerns about how this could affect local government revenues, which rely on property taxes for essential services. The balance between providing taxpayer relief and maintaining necessary funding for municipalities may become a significant topic of discussion in legislative hearings.