Woody
Woody Dork
11/2/08 7:59 p.m.

This Tuesday, I will vote for her, even though she is not up for re-election for another two years.

Old cars to get tax break Specialty plates no longer needed for fixed rate

BY PENELOPE OVERTON REPUBLICAN-AMERICAN WATERBURY — A little-no­ticed provision in the state’s new motor vehicle law will bring tax relief to the owners of old classics and clunkers. But Waterbury, which stands to lose significant tax revenue from the change, is the only big city that isn’t going to make people work for their tax breaks. The law, which Gov. M. Jodi Rell signed in June, lowers the municipal tax assessment of ve­hicles at least 20 years old to no more than $500. Before the law was passed, the owners of older vehicles had to get a specialty license plate for antique cars to qualify for the $500 maximum assess­ment. This law extends the tax ben­efits long available to antique car collectors to people who drive old cars because they can­not afford new ones. Surprisingly, even clunkers get more valuable as the car gets older, leaving owners of cars that are barely roadworthy with rising tax bills. For example, assessors value a 19-year-old Buick Skylark at $1,500. A year later, the value rises to $3,325. More than 1,800 people in Waterbury will reap a tax sav­ings from the new law, accord­ing to city records. A review of assessment records reveals a wide range of beneficiaries, from the owner of a 1986 Porsche, who would have saved $726 on car taxes if the assessment law had been in place last year, to the person who drives the 1985 Chevy Chevette, who would have shaved a mere 40 cents from her bill. “Sounds good to me,” said Alicia Piombo, who owns the highly-taxed Porsche. “We have antique insurance on it, but not the antique plates. My son uses the car, and he didn’t want to get the antique plates because he has a vanity plate. But the tax bill was very high, so I’ll take any break I can get.” The new law will have a big impact on cash-strapped cities, said the city’s tax as­sessor, David Dietsch, who is president-elect of the Con­necticut Association of As­sessing Officers. If this law had been in place last year, Waterbury would have lost about $115,000 in motor vehi­cle taxes, he said. That may be why many big cities in Connecticut don’t plan to automatically adjust their tax assessments for eli­gible vehicles. Dietsch said that Waterbury, with the sup­port of Mayor Michael J. Jar­jura, is one of only a few large cities that plans to adjust the value of the car before send­ing out July tax bills. He said a survey of mem­bers of the state association of assessors found that most big cities plan to make residents seek out the $500 assessment, either by applying for an old­er vehicle exemption, by ap­pealing the value to the assessment appeals board or by scheduling an in-person interview with the assessor. Some assessors are even considering making the appli­cant prove that he or she has not modified the vehicle from its original condition when it rolled off the manufacturer’s floor, Dietsch said. While a collector can afford to track down original replacement parts, a typical 20-year-old Chevy Nova driver probably can’t, he said. Dietsch is encouraging fel­low assessors to make the re­duced assessments automatically available to owners. “People with money to buy antique cars have been bene­fiting from this law for a long time, but now people who simply can’t afford to replace their old cars can enjoy the same benefit,” Dietsch said. “If it was up to me, I would do away with the car tax alto­gether because it’s not worth my time, but fair is fair.”

P71
P71 Reader
11/2/08 9:32 p.m.

What is this car tax they speak of?

Evan_R
Evan_R New Reader
11/3/08 5:11 a.m.

so you have to pay $3500/year to register a 1988 Buick Skyhawk??

Wally
Wally SuperDork
11/3/08 6:51 a.m.
...That may be why many big cities in Connecticut don’t plan to automatically adjust their tax assessments for eli­gible vehicles. Dietsch said that Waterbury, with the sup­port of Mayor Michael J. Jar­jura, is one of only a few large cities that plans to adjust the value of the car before send­ing out July tax bills. He said a survey of mem­bers of the state association of assessors found that most big cities plan to make residents seek out the $500 assessment, either by applying for an old­er vehicle exemption, by ap­pealing the value to the assessment appeals board or by scheduling an in-person interview with the assessor....

So cities plan on ripping off people that don't know to ask about the tax reduction. I wonder why some people don't trust the gov't.

ignorant
ignorant SuperDork
11/3/08 7:53 a.m.

property tax like SC i gather

neon4891
neon4891 Dork
11/3/08 8:07 a.m.

I wonder if neons will go up in value in another 10 years... if any are still on the road

Woody
Woody Dork
11/3/08 8:12 a.m.

Yes, they are referring to property tax. We pay sales tax to the state at the time of registration, and then property tax annually to the town.

It's also always bugged me that sales tax is applied to used cars. It seems that it should be paid once by the original purchaser when the car is new and that's it. As it is now, if a car was sold to ten people over its lifespan, each one would pay sales tax on it. By the fourth or fifth owner, sales tax paid on the car would exceed the MSRP of the car.

I'd concede that it should also apply to any used car that is brought in from another state.

P71
P71 Reader
11/3/08 8:17 a.m.

Property tax on a friggin CAR??!?!?! Why does ANYBODY live there?

bludroptop
bludroptop Dork
11/3/08 9:48 a.m.

There are a couple of things I miss from living in CT - the personal property tax on cars ISN'T one of them.

They do charge a personal property tax on cars where I live now, but it is peanuts compared to CT.

At least Governor Rell has so far avoided prison, in contrast to her predecessor. Then again, she's a transplant from Virginia, so maybe that has something to do with it.

Josh
Josh Reader
11/3/08 12:16 p.m.

Do many states not have excise/property taxes on cars? I just paid $190 to renew the registration on my 10 year old 3-series. I will be paying that same annual rate as long as I own the car. The Miata is considerably more reasonable at just about $100, but similarly, I will never pay any less than that. The way the rates are computed, any car over 6 years old is all done depreciating. And when the original sticker is $40k that makes for a painful bill every year for a car valued well under $10k. Frankly I am surprised I EVER see an E32 7 series on the road in this state, I've seen some for sale for barely more than they would cost every year to register.

neon4891
neon4891 Dork
11/3/08 12:58 p.m.

never though having a car in New York would be easy compared to other states, aside from PA and how rust is part of the state inspection...

Tyler H
Tyler H Dork
11/3/08 2:00 p.m.

It costs $26 a year to register a car in my county in TN. No inspections, no emissions, no wheel tax. God bless the South.

P71
P71 Reader
11/3/08 3:11 p.m.

Florida had no such BS. You bought a tag, drove your car, and when it died you swapped the tag onto the next one. Washington is even better, the tags stay with the car and it's only $30/year to keep the car going. It's uber-easy to amass a fleet of vehicles up here.

I don't understand how they could possibly tax a used car for more then it's worth....

skruffy
skruffy Dork
11/3/08 3:14 p.m.

Costs me $50/year here in ohio. No emissions/inspections either.

Armitage
Armitage Reader
11/3/08 3:33 p.m.

Almost every place I've lived has had some form of personal property tax on vehicles. Fortunately here in VA, the assessed value of my Galant is so low that the tax is only $20/year. No such luck with the FD though :(

ignorant
ignorant SuperDork
11/3/08 3:54 p.m.

For example in SC

My wifes Rav4 2007 bought new is about ~$400 a year for the first year. 2nd year it was ~$300.. etc etc...

My 96 civic hatch is $38.

Jensenman
Jensenman SuperDork
11/3/08 4:24 p.m.

The Trooper is ~$30.00, the J-H is ~$15.00, the Accord is ~$25.00.

About 20 years ago, I was standing in the DMV line behind some woman who drove a Jag. She was holding her property tax receipt; it was $1475.00.

Hal
Hal HalfDork
11/3/08 6:35 p.m.

In Maryland

5% Sales tax on value of car when purchased.

Safety Inspection when purchased.

Registration/Tags every two years varies by weight of vehicle. My Focus is $138 for two years.

Emissions inspection every two years in most of the state.

Vehicles over 25 years old can get Historic or Street Rod tags which eliminates the need for safety and emissions inspections and the tags are cheaper.

Another interesting fact is that Historic vehicles can use an age appropiate tag ( My B-I-L has a 1940 MD plate on his 40 Ford). You have to register it with the DMV and have the regular tags in the car.

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