Could the car tax be changed or eliminated? A bill to create a task force to study the feasibility of eliminating the property tax on motor vehicles passed the Planning and Development Committee Wednesday in a 14-7 vote.
State Senator MD Rahman (D - Manchester) introduced Senate Bill 497, “An Act Eliminating The Property Tax On Motor Vehicles And Establishing The Motor Vehicle Property Tax Revenue Replacement Account.”
The task force would study the feasibility of repealing the motor vehicle property tax and what options are available to replace resulting lost municipal revenue.
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The task force will look at how such a decision would impact municipal budgets and review possibilities that could replace lost revenue.
Rahman says it’s all about addressing the inequities between different communities when it comes to local property taxes and the rising cost of living in the state.
“This is another way we can help the young students, workforces, and seniors, so they don’t have to worry to pay the car tax,” he said.
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The task force would include representatives of tax reform organizations, organizations supporting residents over the age of 50, municipal leaders, insurance carrier officials, the secretary of the Office of Policy and Management, the Commissioner of Revenue Services and members of the Planning and Development Committee.
The group would report its findings by the end of 2023. The bill will now go to the Senate for consideration.
