January 26, 2015

New Report: Evasion of Property Taxes on Motor Vehicles

OLR Report 2014-R-0285 examines what Connecticut municipalities are doing to prevent people from registering their vehicles outside of their home towns to avoid paying property taxes on them. 

Motor vehicles in Connecticut are subject to property tax, generally in the municipality where the vehicle, in the normal course of operation, most frequently leaves from and returns to or in which it remains. The tax applies to unregistered vehicles; vehicles registered in Connecticut; and, under certain conditions, vehicles registered in other states. Connecticut municipalities assess motor vehicles and tax them at locally set rates. Consequently, some vehicle owners try to reduce their tax burden by registering their vehicle in another municipality or state with a lower tax rate.

Click here to read what municipalities are doing to address this issue.