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Bill

Bill

HB 5100

AN ACT INCREASING THE MAXIMUM MILL RATE FOR MOTOR VEHICLES.

2025 Regular Session

Connecticut bill increases the maximum property tax mill rate municipalities can levy on motor vehicles, enabling higher tax collection from vehicle owners.

CHG. REF., SEN. TO COMM. ON Finance, Revenue and Bonding
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Bill Summary · HB 5100

Legislative bill overview

HB 5100 proposes to increase the maximum mill rate that Connecticut municipalities can apply to motor vehicle property taxes. Mill rates are expressed per $1,000 of assessed value, so an increase allows towns to collect more tax revenue from vehicle owners. The bill has been referred to the Finance, Revenue and Bonding Committee in both chambers, indicating it's in early legislative review.

Why this is important

Motor vehicle taxes are a significant revenue source for Connecticut municipalities, funding schools, infrastructure, and local services. Raising the maximum mill rate directly affects vehicle owners' tax bills and gives towns greater flexibility in funding local budgets, but may disproportionately impact residents in high-tax communities or those with multiple vehicles.

Potential points of contention

  • Regressive tax impact: Vehicle taxes fall more heavily on middle and working-class households that rely on cars, potentially increasing their overall tax burden
  • Municipal budget concerns: Towns with high existing mill rates may use this authority to raise rates rather than address spending issues, while wealthier towns may not need the increase
  • Business and commuter effects: Higher vehicle taxes could affect delivery services, contractors, and commuters, with potential economic ripple effects

Compiled from official sources — confirm details with the bill’s official record.

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