Bill > SB01445

This bill allows municipalities in Connecticut to choose to exempt motor vehicles from property taxation through a local ordinance, with the option to phase in this exemption over a period not exceeding five years. To offset the potential revenue loss from this exemption, municipalities can simultaneously increase the uniform assessment rate for other types of property (such as real estate and personal property excluding motor vehicles). If a municipality decides to adopt such an ordinance, it must notify the Secretary of the Office of Policy and Management (OPM) within 30 days, specifying the assessment year when the motor vehicle exemption will take effect and the proposed property tax assessment rates during the transition period. The Secretary of OPM is required to submit an annual report to legislative committees starting January 1, 2027, detailing which municipalities have implemented this exemption and providing any recommended legislative changes. The bill modifies existing state law to allow for this optional motor vehicle property tax exemption and provides a framework for municipalities to gradually implement the change, with an effective date of October 1, 2025.

Budget and Finance, Housing and Urban Affairs

Planning and Development Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01445&which_year=2025