Motor vehicle assessment in Connecticut is a two-step process. Your municipality’s assessor determines the value of your vehicle, and then multiplies that value by the 70% assessment ratio to arrive at your motor vehicle assessment. Over the past year, multiple changes have been authorized that impact this value determination.
Prior to October 1, 2024, assessors across Connecticut calculated the value of a motor vehicle as 100% of the retail price according to the National Automobile Dealers Association (NADA) appraisal guide.
Starting October 1, 2024, however, assessors now value motor vehicles using the manufacturer’s suggested retail price (MSRP). Importantly, whereas the prior valuation method valued vehicles at 100% of retail value, under the new method, the MSRP value is reduced to account for depreciation based on the age of the vehicle.
Municipalities have the authority to determine the rate at which they calculate such depreciation. The default depreciation schedule provides that a vehicle up to 1 year of age holds 85% of its MSRP value, which drops by 5% each year. Once a vehicle is 20 years old, it is valued at $500.
After the passage of Public Act 25-2 this spring, municipalities also are authorized to adopt an alternative depreciation schedule, which stipulates that a motor vehicle under 1 year of age holds an increased 90% of its MSRP value. The alternate depreciation schedule likewise reduces the retained value of the MSRP value by 5% each year, culminating with a $500 total value in year 20.
Adoption of the alternative depreciation schedule allows municipalities to assess vehicles at a slightly higher value than vehicles graded according to the default depreciation schedule, resulting in slightly higher tax bills, all else being equal.
Once the assessor has valued your motor vehicle, it is multiplied by the 70% assessment ratio to reach the assessment. That assessment is then multiplied by the motor vehicle mill rate – which is capped by statute at 32.46 mills – to arrive at your tax bill.
By modifying the underlying data, calculation method, and depreciation schedules, the motor vehicle valuation process has changed significantly since October 1, 2024. To read more on the changes and to see an arithmetic example provided by the Office of Policy and Management (OPM) comparing the old valuation method with the new valuation method, see the below links.
Office of Legal Research report on the change: https://www.cga.ct.gov/2025/rpt/pdf/2025-R-0097.pdf
OPM guidance with a demonstrative example of how the change impacts taxpayer tax bills: https://portal.ct.gov/-/media/opm/igpp-data-grants-mgmt/motor-vehicle-changes-for-taxpayer.pdf?rev=04c7e13e9caa4c418f0aec8759624a2d&hash=63E551199BD0BBDEE53BC8A4D33C9878
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