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General Assembly Raised Bill No. 1445
January Session, 2025
LCO No. 5445
Referred to Committee on PLANNING AND
DEVELOPMENT
Introduced by:
(PD)
AN ACT AUTHORIZING MUNICIPALITIES TO EXEMPT MOTOR
VEHICLES FROM PROPERTY TAXATION.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective October 1, 2025) (a) Notwithstanding the 1
provisions of chapter 203 of the general statutes, any municipality may, 2
by ordinance adopted by its legislative body or, in a municipality where 3
the legislative body is a town meeting, its board of selectmen, exempt 4
motor vehicles from property taxation. Any municipality that adopts 5
such ordinance may, over a period not exceeding five years, phase in 6
such exemption and transition the municipal revenue loss resulting 7
from such exemption by phasing in an increase in the uniform 8
assessment rate applicable to real property and personal property other 9
than motor vehicles under subsection (b) of section 12-62a of the general 10
statutes, as amended by this act. The municipal assessor may utilize 11
methods that such assessor determines are appropriate and reasonable 12
to accomplish the purposes of this section. 13
(b) Any municipality that adopts an ordinance pursuant to 14 Raised Bill No. 1445
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subsection (a) of this section shall, not later than thirty days after the 15
adoption of such ordinance, notify the Secretary of the Office of Policy 16
and Management in writing (1) that such municipality has adopted such 17
ordinance, (2) the assessment year for which the exemption of motor 18
vehicles from property taxation shall go into effect, and (3) the property 19
tax assessment rate selected by such municipality for each assessment 20
year until such exemption is effective. 21
(c) Not later than January 1, 2027, and annually thereafter, the 22
Secretary of the Office of Policy and Management shall submit a report, 23
in accordance with the provisions of section 11-4a of the general statutes, 24
to the joint standing committees of the General Assembly having 25
cognizance of planning and development and finance, revenue and 26
bonding concerning each municipality that has provided notice of the 27
adoption of an ordinance exempting motor vehicles from property 28
taxation pursuant to this section in the immediately preceding 29
assessment year. Such report shall include, but not be limited to, a copy 30
of any such ordinance, the assessment year for which such exemption 31
shall be effective and the property tax assessment rate selected by such 32
municipality for each assessment year until such exemption is effective. 33
The initial report required under this subsection shall include the 34
secretary's recommendations for any legislative changes the secretary 35
deems necessary to implement the provisions of this section. 36
Sec. 2. Subsections (a) and (b) of section 12-62a of the general statutes 37
are repealed and the following is substituted in lieu thereof (Effective 38
October 1, 2025): 39
(a) Each municipality, as defined in section 7-381, shall establish a 40
uniform assessment date of October first. 41
(b) Each such municipality shall assess all property for purposes of 42
the local property tax at a uniform rate of seventy per cent of present 43
true and actual value, as determined under section 12-63, except that 44
such uniform rate shall not apply to any municipality that adopts an 45
ordinance to exempt motor vehicles from property taxation pursuant to 46 Raised Bill No. 1445
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section 1 of this act. 47
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2025 New section
Sec. 2 October 1, 2025 12-62a(a) and (b)
PD Joint Favorable