Car Taxes Drop

January 20, 2016

One of the largest business payers of motor vehicle taxes in town will see its tax bill drop by several thousand dollars over the next few years, and will put that savings toward the installation of solar roof panels, all thanks to a Democrat-led change in Connecticut’s onerous and inconsistent motor vehicle tax system.

Every vehicle owner will benefit from this cut to one of the most burdensome taxes in this state, the local property tax. In addition, local aid from the state is increased, which is a major source of revenue for cities and towns that affects everyone’s property-tax rates and local service delivery.

With a town tax rate of 39.4 mills, Hartford Distributors is currently paying a combined $30,182 in motor vehicle taxes on approximately 90 motor vehicles to both the Town of Manchester and the Eighth Utilities District.

Dropping the statewide motor vehicle tax rate to 32 mills in 2016 will cut Hartford Distributors’ motor vehicle tax bill by about 19 percent, for a savings of approximately $5,700. When the statewide motor vehicle tax rate drops again to 29.36 mills in 2017, Hartford Distributors’ motor vehicle tax bill be cut by another $2,000.

Hollander said he plans to put the tax savings toward the installation of solar panels on the roof of his business, which employs about 200 people at 131 Chapel Road. “I can use the tax savings to go green, save myself some electricity costs and put some local contractors to work, all at the same time,” Hollander said. “It’s a win-win-win-win. What’s not to like?”

In addition to Hartford Distributors, some of the other large motor vehicle business taxpayers in Manchester (those owning 35 or more motor vehicles) to benefit from the coming tax rate changes include Silktown Roofing (paid $50,672 in MV taxes this year), First Student transportation ($46,161), Instrument Manufacturing Co. ($36,179), the Ambulance Service of Manchester ($23,259) and Action Air Systems ($12,597).

Families and individuals will save, too, seeing their motor vehicle taxes drop by about 19 percent next year and another 6 percent the year after that (there are more than 45,000 motor vehicle accounts in Manchester.)