Ellington Officials Explain New Vehicle Appraisal Method Amid Tax Concerns

During a recent meeting, officials from the Town of Ellington addressed community concerns regarding changes in vehicle appraisal methods that have led to increased tax bills for some residents. The discussions highlighted that the adjustments stem from a state statute enacted in 2022, which altered how vehicle values are assessed for taxation purposes.

The new approach utilizes the Manufacturer's Suggested Retail Price (MSRP) of vehicles, applying a fixed depreciation schedule. This contrasts with the previous method, which relied on the JD Power and NADA value guides. The change was prompted by significant fluctuations in used car values during the COVID-19 pandemic, which saw many vehicles appreciating in value unexpectedly.

Officials clarified that while some residents have experienced higher tax bills, the overall motor vehicle grand list for Ellington decreased by approximately $10.5 million, resulting in a loss of about $340,000 in tax revenue. This indicates that the majority of vehicles saw a reduction in value, although certain age groups, particularly those between 7 to 12 years old, experienced increases due to the new depreciation schedule not aligning with their market values.

The town's leadership reassured residents that this year marked an initial adjustment period, and they anticipate fewer inquiries and concerns in the future as vehicle values stabilize. As the depreciation process continues, officials expect that tax bills will reflect more consistent assessments moving forward, alleviating some of the confusion and frustration currently felt by residents.