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Council rejects change to slower vehicle-depreciation schedule; retains state default
Summary
After debate over who should bear a roughly $437,000 shift in tax burden, the council voted 4–3 to retain the state default vehicle depreciation schedule (85%), rejecting a motion to adopt a 90% starting schedule.
East Hampton council members debated and voted on whether to adopt an alternative motor‑vehicle depreciation schedule authorized by the state. The proposed change would have used a 90% first‑year starting value and a slower depreciation curve in place of the default schedule that begins at 85% and declines by 5% annually.
Staff presented an analysis showing that under the default schedule the town’s assessed vehicle value would drop by about $23 million; adopting the 90% option would have kept assessed vehicle values higher (about $140 million versus about $126 million under the lower starting point), producing an estimated $437,000 difference in tax revenue that otherwise would shift to real‑property taxpayers if not recovered through motor‑vehicle assessments.
Supporters of the slower depreciation argued the change would target taxes more directly at owners of higher‑value or multiple vehicles rather than spreading the burden across real‑estate taxpayers on fixed incomes. Opponents said the town would still need to make up the revenue and that keeping the state default was reasonable and administratively simpler. Councilmembers referenced comparisons to other states and fairness considerations during discussion.
A motion to adopt the 90% schedule was made and failed by a close vote; the council retained the state default assessment schedule for motor vehicles.
