SOUTH WINDSOR, Conn. — Gov. Lamont is proposing to lower the state's maximum mill rate for vehicle property taxes down from 45 to 29. In the law proposed last month, Lamont said local governments will be reimbursed for the lost revenue.
If passed, 77% of vehicles in the state would see tax relief.
Lamont spoke in South Windsor on Friday and said the state has one of the highest property tax rates on homes and cars compared to surrounding states.
Gov. Lamont said it doesn't make sense for the same vehicle in different towns to pay different rates. How much fewer residents would pay would depend on what their local government's current mill rate is. Each municipality sets its own rate. In South Windsor, it's around 37 and the proposed decrease could save people hundreds of dollars each year.
Town Manager Michael Maniscalco said the reduction to 29 would be about a $3 million hit in the yearly revenue.
"This will certainly provide aid to many of us," he said. "It should be noted that, as the proposals go to the legislature, that our legislators consider them in their entirety. Of all the proposals, the car tax cap, if not passed with the funding to make municipalities whole, could have detrimental impacts on our municipalities and residents. That said, as proposed, the reimbursement to towns for lost revenue is essential."
The town manager said, if the reimbursement aspect isn't approved, that could mean raising taxes elsewhere to make up lost funds.
Lamont said this is scheduled to give strong guarantees that the money will be reimbursed.
"We've had three years of surpluses, we've got three and a half billion in a rainy day fund, we scheduled that out over the next few years to make sure that some very prudent tax cuts we’re proposing will be able to maintain that even in the case of recession," said Lamont.
Lamont said he doesn't think it will be a challenge to get bipartisan support when the bill gets voted on in July.
Governments at or below a mill rate of 29 already will not see a difference unless the government changes it. Some of those towns include Bozrah, Farmington, Lyme, and Harwinton.
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