Dear Neighbor,
Over the past few weeks, I have heard from many of you about your concerns surrounding the recent increase in Southington’s car tax. I want to be transparent about how this happened, what changes were made at both the state and local level, and how I personally voted on this particular issue. |
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Background on the State Car Tax Law
In 2022, before I was elected to the General Assembly, state lawmakers voted to adjust how car taxes are calculated. Instead of using resale values from sources like the National Automobile Dealers Association (NADA), the new system began taxing vehicles based on a fixed depreciation schedule, starting at 80% of the Manufacturer’s Suggested Retail Price (MSRP). The intent behind this shift was to bring more predictability, affordability, and fairness to the system, especially during a time when car prices were highly inflated due to the pandemic.
Again, I was not serving as your State Representative at this time, but if I were, I would have thoroughly examined any proposed change to the car tax and considered its short and long term implications on taxpayers. |
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What Changed in 2024 and 2025
In June of 2024, responding to concerns from towns and cities that the new system might reduce tax revenue and municipalities would not be able to fund their budgets, the General Assembly passed SB 501, adjusting the depreciation schedule from 80% to 85% of MSRP.
I voted NO on SB 501 because I believed that increasing the car tax – particularly during a time of high inflation – was not the right move for Southington families. Contrary to my position, the bill passed: sixteen Republicans, including the House Minority Leader, voted in favor, while eleven Democrats, including myself, voted against it.
Then in February 2025, towns again appealed for more flexibility to increase their tax revenues to fund their local budgets. The General Assembly passed HB 7067, which gave each municipality the option to raise the depreciation start point from 85% to 90% of MSRP. This bill was about local control, allowing town governments, not Hartford, to make the final call on which schedule to adopt. The vote passed overwhelmingly in both chambers, with only five legislators in the entire House voting against it. Every present member of Southington's legislative delegation supported the measure. |
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Southington's Local Decision
The Town of Southington had a choice. It could have kept the 85% depreciation schedule, but the Town Council voted unanimously (9-0) to raise it to 90%. In addition, the Council approved a 4.33% increase in the local tax rate.
These two decisions, both within the authority of Southington's government, contributed to the increase in many residents' car tax bills this year.
Looking Ahead
I voted against the statewide increase in 2024 because I didn’t believe raising car taxes was the right answer for our town. I voted in favor of HB 7067 because I support local control and believe decisions about our town's budget should be made at the municipal level, not by the State of Connecticut.
As your State Representative, I will continue to scrutinize proposals that could increase your cost of living, with a strong focus on affordability, fairness, and transparency in tax policy.
As always, I’m happy to answer any questions about the car tax, my voting record, or anything else happening at the Capitol. Please feel free to call my personal cell at 203-520-1243 if you’d like to discuss this further. |
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Sincerely,
Chris Poulos
State Representative |
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