Finance committee backs opting into 90% vehicle valuation schedule, sends measure to full council

The Norwalk City Finance and Claims Committee voted unanimously March 20 to send a resolution to the full Common Council that would let the city apply the state’s alternate motor-vehicle depreciation schedule, beginning Oct. 1, 2024, and valuing new vehicles at 90% of MSRP instead of 85%.

The resolution, read into the record at the committee meeting, cites municipality authority under Connecticut General Statutes to elect the modified schedule of depreciation for motor-vehicle assessments. Committee members then heard from Jared Smith, the city’s chief financial officer, and Paul Gorman, the tax assessor, before approving the measure.

Why it matters: Jared Smith and Paul Gorman told the committee the change would shift a portion of the tax base from real estate to motor vehicles and blunt the immediate impact of a separate legislative change. "We've calculated the tax value of this to be about $1,800,000 in tax value," Smith said, describing the estimated increase in the motor-vehicle grand list under the 90% schedule. Smith and Gorman cautioned the change would not eliminate a larger fiscal effect the city expects from statutory changes to motor-vehicle taxation and required mill-rate adjustments.

Discussion highlights: Gorman said the two-part state action includes (1) a methodology change (the schedule) and (2) a requirement to adjust the motor-vehicle mill rate relative to real-estate rates. He said the 90% schedule primarily offsets the methodology piece — roughly $1.8 million in assessed value — while the required mill-rate changes account for a larger portion of the projected revenue impact. Gorman and Smith discussed practical effects for taxpayers: "It's still gonna go down, but it's gonna go down by less than what we had originally thought," Smith said of the tax bills motorists will receive under the combined changes.

Committee action and next steps: Council Member Heather Dunn moved the item; the committee voted unanimously to forward the resolution to the Common Council for final action on Tuesday, March 25.

What the resolution cites: the reading referenced Conn. Gen. Stat. § 12-40 and the alternative depreciation schedule language read aloud as "section twelve-sixty three ..." (as recited at the meeting); the committee asked that the Common Council formally adopt the election to apply the modified schedule.

Additional procedural note: Committee members asked whether the 90% election can be changed in later years; staff said they would seek clarification from the state and report back before the Common Council meeting.

Ending: With no further questions, committee members approved forwarding the resolution to the full council for final review and vote.