House Bill 5172 (sHB5172 File No. 648) introduces several amendments to the laws governing the assessment and taxation of motor vehicles in Connecticut. Effective July 1, 2024, and applicable to assessment years commencing on or after October 1, 2024, the bill eliminates the requirement for motor vehicles to be classified on the grand list as either a registered motor vehicle or personal property when dealing with unpaid property taxes. Instead, the tax collector must notify the Commissioner of Motor Vehicles to withhold registration until taxes are paid. The bill also shifts the responsibility of establishing motor vehicle valuation guidelines from the Connecticut Association of Assessing Officers to the Secretary of the Office of Policy and Management, in consultation with the Department of Motor Vehicles. It revises the depreciation schedule for tangible personal property, including motor vehicles, and allows for appeals on motor vehicle valuations.

The bill further specifies changes to the assessment of motor vehicles, increasing the initial assessment percentage from 80% to 85% of the manufacturer's suggested retail price and adjusting the depreciation schedule accordingly. It also revises the tax liability for replacement vehicles, changing the cutoff date for replacement from the first day of April to the last day of September and detailing how the tax is calculated for such vehicles. The bill modifies the property tax exemption for certain commercial vehicles and allows municipalities to impose fines for failure to register vehicles. Additionally, it authorizes taxpayers to contest the manufacturer's suggested retail price used for vehicle assessment and requires the Office of Policy and Management to establish annual valuation guidelines. House Amendment “A” removes the requirement for assessors to value vehicles using their original costs if MSRPs are unavailable and adjusts the depreciation schedule for assessing motor vehicles. The bill passed the Planning and Development Committee with a unanimous vote.