In a special session, the state senate has advanced proposed changes to car taxes in Connecticut. The legislation aims to provide relief for residents by increasing the amount of money that can be exempt from vehicle taxes. Currently, residents are allowed to deduct up to $1,000 from the value of their cars for tax purposes. The proposed changes would increase this exemption to $2,000 for cars valued between $28,500 and $72,000.
The bill also includes provisions for municipalities, allowing them to levy a tax on a different value of cars within the $28,500 to $72,000 range. This system aims to provide flexibility to local governments in setting tax rates and ensure fairness in tax assessments.
The proposed changes have received mixed reactions from both parties. Democrats argue that the bill could shift the tax burden onto lower-income residents, while Republicans believe it provides necessary relief for car owners facing high tax bills. The bill passed the state Senate with bipartisan support and will now move to the House for further consideration.
If the changes are enacted, residents could see a reduction in their car tax bills starting in the 2023 fiscal year. Lawmakers urge quick action on the bill to provide relief to residents struggling with high car taxes.
Overall, the proposed changes to car taxes in Connecticut seek to address concerns over high tax bills for residents and provide flexibility for municipalities in setting tax rates. As the bill moves forward in the legislative process, both parties will continue to debate the potential impacts and benefits of the proposed changes.
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