Southington, Connecticut— If you’ve opened your Connecticut motor vehicle tax bill this week and were shocked by the total — you’re not alone. Many residents are seeing higher bills this year, even though their cars are another year older and should, in theory, be worth less.
Southington resident Glenn Murano was among the surprised. His 2017 Kia Sorento was taxed at $507 this year, compared to $434 last year — a $73 increase.
“Wait a minute, I paid $434, now I’m paying $507. How did it go up? It’s a year older. It’s a year more diminished,” Murano told the I-Team.
The Reason? New Car Tax Formula Based on MSRP, Not Market Value
The spike is due to a new law passed by the Connecticut state legislature, which changes how towns calculate car values for tax purposes.
Previously, towns used resources like Kelly Blue Book to assess market value, which fluctuated based on demand and condition.
Now, municipalities must use your car’s original MSRP (Manufacturer’s Suggested Retail Price) and apply a fixed depreciation schedule — regardless of current market conditions.
Example: A 2022 Chevy Equinox with a current Kelly Blue Book value of $19,672 would now be assessed using its original MSRP of $28,295. At 3 years old, it’s taxed at 80% of MSRP, meaning $22,636 — about $3,000 more than the old method.
Why Did This Change Happen?
The state says the new formula makes car taxes more predictable and less prone to swings in the used-car market.
But not everyone agrees.
“I personally think the old way was better. Everyone was paying less in taxes,” said Southington Town Council member Jack Perry, who voted against the new approach. “If you have a car that depreciates more, you should be able to pay less tax.”
While the MSRP system is mandatory, towns can choose how the depreciation starts — either 85% or 90% of MSRP. Southington chose 90% to avoid a projected 10% drop in taxable property.
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Who’s Hit Hardest — and Who Might Benefit?
The effect depends on what kind of car you drive. Vehicles that retain their value well under the old system may see smaller increases — or even savings. But for many others, this change means higher car taxes, regardless of mileage or condition.
What Do You Think?
Is this new car tax method fair? Should Connecticut return to market-value-based assessments?
Let us know in the comments below or share your experience with us.
For more updates on tax law, local politics, and cost-of-living changes across Connecticut, follow ridgecrestpact.org.
