Motor Vehicle Property Tax

Motor vehicles are subject to a local property tax under Connecticut state law, whether registered or not.

Motor vehicle assessment changes effective October 1, 2024

Starting with the 2024 Grand List, ALL motor vehicles, registered and unregistered, will be valued using the MSRP (Manufacturers Suggested Retail Price).  Vehicles will be assessed on a declining percentage of the MSRP, starting in year 1 at 90% of the MSRP and declining to 20% in years 15 to 19, but no lower than 500.  There will be no adjustments for condition, high mileage or salvage or rebuilt titles.  These changes were passed during the June 2024 Special Session of the CT State Legislature.  The intent of the legislation is to ensure that vehicle assessments decline over time.

New Personal Use Exemptions pursuant to Section 12-81-(82) of the CT General Statutes

*  Any snowmobile, all-terrain vehicle or residential utility trailer, provided such property is exclusively for personal use is exempt for assessment years commencing on or after October 1, 2024.

*  A utility trailer is defined under Section 14-1 as a trailer designed and used to transport personal property, materials or equipment, whether or not permanently affixed to the bed of the trailer.

*  While still required to be registered with the Department of Motor Vehicles, these types of vehicles will be treated as personal possessions and no longer subject to local property taxation.

Motor vehicles are assessed at 70% of the depreciated value, which is determined by applying a standardized depreciation schedule to the Manufacturer Suggested Retail Price (MSRP) of the vehicle.  Vehicles which have active registrations appear on bills are due in July next following the October 1st assessment date.  Vehicles registered after October 1st appear on the Supplemental Grand List and are taxed from the month they registered to September 30th.  These bills are due the following January.

To Calculate a Motor Vehicle Tax Bill

Motor Vehicle tax bills are calculated by applying a standardized depreciation percentage to the MSRP to arrive at a depreciated value.  the depreciated value is multiplied by the statewide 70% assessment ratio to arrive at a taxable assessment.  the mill rate is then applied to the taxable assessment to calculate the dollar amount of the tax bill.

MSRP X DEPRECIATION % X 70% X MILL RATE = TAX BILL

EXAMPLE:  Calculate the tax bill for a 2024 model year vehicle with an MSRP of $35,000 using the 2024 Grand List motor vehicle mill rate of 32.46

35,000 X 90% = 31,500 DEPRECIATED VALUE

31,500 X 70% = 22,050 TAXABLE ASSESSMENT

22,050 X .03246 = $715.74 2024 GRAND LIST TAX BILL

Supplemental Motor Vehicles
Supplemental motor vehicles are vehicles that were not registered on October 1st, but were registered subsequent to October 1st and prior to August 1st. 

Motor vehicle assessments are prorated from the month registered through September at the following percentages of assessed value:

Adjustments/Change of Ownership    
       
If a vehicle has been disposed of during the described period, an owner may apply for an adjustment to their tax bill.  the required documentation must specifically identify the vehicle in question by make, year, and identification number, and the date of the transaction.  Proof of registration cancellation plus one other form of proof is generally required.

If you have transferred license plates from this vehicle to a replacement vehicle, you do not need to submit further documentation.  the current bill should be paid in full, and a credit from the resulting over-payment will be applied against the replacement vehicle's supplemental tax bill, which is due in January.

It is strongly recommended that people seeking an adjustment pay their full tax bill on time.  If the bill is adjusted later upon receipt of the acceptable documentation, a partial refund will be issued by the Collector of Revenue.  All Tax bills paid late, regardless of circumstances, are charged 18% interest rate per year.  This interest cannot be waived.

CT Department of Motor Vehicles (DMV) does not inform towns when plates are returned, nor when vehicles are sold, registered out of state, or otherwise disposed of.  It is the taxpayer's responsibility to provide the required documentation within the time limits as proved under applicable CT law.

A plate receipt from the Department of Motor Vehicles indicating the cancellation of the registration AND IN ADDITION TO THE PLATE RECEIPT, any one of the following listed below.  Please note that the the receipt of plate cancellation from the CT DMV alone does not show that you have disposed of the vehicle.

Please Note:
The proof for adjustments (prorates) of motor vehicles regular list must be presented within 26 months of the assessment date.   In accordance with Connecticut General Statute §12-71c, the deadline for filing for property tax credits is as follows:

10/1/2023 Grand List - December 31, 2025 deadline

10/1/2024 Grand List - December 31, 2026 deadline

10/1/2025 Grand List - December 31, 2027 deadline

For more information on verifying a CT registration status, canceling a motor vehicle registration, renewing a registration, or filing a lost or stolen plate return, please visit the DMV website at: DMV online services in Connecticutct.gov

Click here for a listing of Acceptable Forms of Proof for Motor Vehicle Adjustments for a listing of appropriate documents.

Taxpayer failure to provide all forms of proof for the adjustment within the 26 months of the assessment date forfeits the right to an adjustment of the bill by CT law (12-71c).