Lt. Gov. Bysiewicz highlights car tax cut that aims to save millions for CT families
Lt. Gov. Susan Bysiewicz was with local officials in Wethersfield Monday morning to highlight the tax cut on vehicles in the state of Connecticut.
The lower motor vehicle property tax is part of the state budget adjustment bill that was recently signed into law.
Officials say the lower car tax will save households in more than 70 communities around $100 million by capping mill rates at 32.46 and reimbursing municipalities for the lost revenue.
For example, if a town has a mill rate of 50, car owners will pay a rate of 32.46 and the state will reimburse that town for the remainder.
The car tax cut is part of $600 million in tax cuts that are included in the fiscal year 2023 state budget.
“The governor’s tax cut package will have a direct impact on Connecticut residents, municipalities and businesses, especially medium and small, during a time when they need it most,” said Bysiewicz in prepared remarks. “At a time when our country is experiencing high levels of inflation, there is no better time to provide some relief to Connecticut residents. The dollars saved will allow for more money to be reinvested back into businesses, benefiting both customers and employees across our state, and municipalities will be able to use reimbursed revenue to invest back into their communities.”
The budget also includes a $250 per-child tax credit, funding payments for earned income tax credit-eligible households, and an increase to the property tax credit from $200 to $300.
Also under the new legislation, the state's retail gas tax has been suspended through the end of November and rides remain free on all Connecticut public buses through the end of November as well.