Cheshire delays vote on new vehicle-depreciation option, keeps local choice for next year

Town of Cheshire officials discussed a state-authorized local option to change how the town values motor vehicles for property-tax purposes and agreed not to adopt the change for the coming tax year, leaving the option open for a possible vote next year.

Town Manager Sean Kimball, who presented the proposal and the numbers, said the state action allows towns to use a sticker (MSRP) baseline and a different depreciation schedule and that “to be clear it’s not generating in our case any additional new money … it is though shifting a little bit of the burden and we calculate that at about $400,000.” He also told the council that, under the state timeline, “you have to take a vote no later than April 15.”

Why it matters: Under the local option towns may adopt a slightly less aggressive depreciation schedule (an initial 90 percent of sticker price in year one, then five percent reductions thereafter, with a stated minimum value), which would raise motor-vehicle assessed values relative to the current schedule and—because the town maintains the same tax levy—shift some tax burden from real property (homes and businesses) to vehicle owners. Cheshire’s town staff estimated the change would shift roughly $400,000 of the levy to motor vehicles; staff also reported the town’s motor-vehicle grand list fell by about $27 million this year and that Cheshire lists roughly 26,000 vehicles.

Discussion and council concerns: Staff and several council members emphasized two trade-offs. Adopting the option would slightly lower the town’s residential mill rate but raise many vehicle tax bills modestly—staff’s sample showed common changes of roughly $30–$40 per household, though individual impacts vary by house and vehicle values. Council members worried the change would reopen the Board of Assessment appeals period, producing staff workload and a financial risk from appeals. One council member described the reopening risk as “a real risk” and urged caution; another said the car tax is already a frequent source of public complaint and weighed that against the marginal mill-rate benefit.

Outcome and next steps: The council did not take a binding vote to adopt the option for the current tax year; the recorded direction was to keep the local option available for consideration next year (no formal adoption). Town staff said they can prepare materials for a future consideration and will watch state rulemaking and timing. Assessor Chris McCardell was present for questions about recalculation costs and the reassessment/appeals window.

What was not decided: The council did not adopt the local option, did not set a new mill rate tied to the option, and did not direct staff to file any immediate formal notice to state agencies to adopt the schedule for the coming year.

Ending: Town staff said they will monitor the legislature and state guidance and bring refined numbers back to the council ahead of the next decision window.