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Council elects modified motor-vehicle depreciation schedule to offset revaluation impacts
Summary
The council voted to adopt a modified depreciation schedule for motor-vehicle assessments starting Oct. 1, 2024, a change officials said will generate roughly $1.8 million to offset residential revaluation effects.
The Norwalk Common Council voted March 25 to apply a modified motor-vehicle depreciation schedule under Conn. Gen. Statutes to assessments for vehicles beginning with the Oct. 1, 2024 grand list.
Nut graf: Finance officials said the change to begin vehicles at 90% of value and then reduce by 5% annually will moderate a large reduction in motor-vehicle tax valuation resulting from prior state-level methodology changes; staff estimated the measure would generate about $1.8 million to offset revaluation impacts on the city’s revenues.
Details: Council Member Burnett moved the resolution on the tax assessor’s recommendation. Chief Financial Officer Jared Schmidt explained the statute change allows municipalities to elect a modified depreciation schedule; the council’s action sets the starting depreciation at 90% (instead of a previously considered 85%) for the new model year and then a 5% annual reduction thereafter. Schmidt said the legislature’s earlier methodology change produced roughly a 30% reduction in motor-vehicle tax value, and the council’s election is intended to soften that decline.
The council posed clarifying questions about long-term depreciation minima; staff said the lowest taxable value permitted under statute is $250 for very old vehicles. The council approved the resolution unanimously.
Ending: Officials characterized the vote as a budget‑neutral technical change intended to stabilize municipal revenues during a period of residential revaluation and changing state methodology.
