Every week, Mansion Global poses a tax question to real estate tax attorneys. Here is this week’s question.
Q. I’m a new resident to Connecticut and I hear that I have to pay property taxes on my vehicles. Is this the only state that requires that?
A. Connecticut is not the only state that requires residents to pay property taxes on vehicles, but it may come as a surprise to someone moving from a neighboring state—such as New York—that does not have such a levy.
In Connecticut, the tax is collected by towns and cities, according to the State of Connecticut Department of Motor Vehicles. Taxes are charged whether or not the vehicle is registered.
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Motor vehicles are assessed at 70% of average retail value, as determined by the local taxing authorities, according to the state. The uniform assessment date is Oct. 1 in Connecticut, and payments are generally due by July 1.
Owners of vehicles registered between Oct. 2 and July 31 pay a prorated amount, depending on when the vehicle was registered. The tax due date is usually Jan. 1.
The rate is also determined by the local municipalities, so it varies from one area to another, according to the state.
However, the state has an effective vehicle tax rate of 2.6%, according to a property tax report published earlier this year by WalletHub, which calculated taxes on a $25,000 vehicle. A resident would pay $650 for that car.
Virginia has the highest vehicle taxes, the report found. There, residents pay an effective rate of 4.05%, meaning an annual bill of $1,011.
Mississippi and Rhode Island have the second and third highest vehicle taxes, the data showed. Mississippi residents pay $875 with an effective rate of 3.5%, while those in Rhode Island have a 3.46% rate and pay about $864.
Louisiana has the lowest rate, WalletHub found. Its rate of 0.1% means a $25 annual bill.
There are 23 states that don’t have this levy, plus Washington, D.C., according to the report. In addition to New York, those include New Jersey, Massachusetts, Florida, Texas and Illinois.
Many states also tax boats as personal property, but Connecticut is not one of them. It does require annual registration fees, however, according to the state.
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