Classic Car Owners Must Switch Plates Or Pay Possible Tax Increase

By John Voket

Whether you own a showroom condition classic, or a rusting hulk, your antique or collectable automobile may end up costing you more in property taxes next year if you don’t apply for special motor vehicle plates by this October. In an attempt to help raise revenues to offset increasing property taxes for all residents, Assessor Thomas DeNoto is bringing Newtown in line with other Connecticut communities that value vehicles more than 25 years old be on a two-tiered system.

Those residents who own motor vehicles more than a quarter century old, who are not already using state issued “Early American” plates, have until October 1, 2007 to apply for those tags. Once the “Early American” designation is applied through the Newtown Assessor’s Office, the qualifying vehicle will be taxed at the state minimum of $500, regardless of the vehicles potential resale value.

The owner will then enjoy that fixed assessment for the life of their ownership.

“Beginning next July 1, (2008) those who decide to keep regular Connecticut plates on their vehicles will be assessed motor vehicle taxes based on recommended guidelines that include, but are not limited to the Department of Motor Vehicles vehicle identification number, the NADA Collector’s Valuation Guide, commonly used Internet resources like Autotrader.com or other assessor’s sources,” Mr DeNoto explained.

Any Newtown owner who is facing adjusted assessments on qualified motor vehicles will receive that minimum assessment this year, and they are being informed about the pending changes via a memo from Mr DeNoto accompanying adjusted motor vehicle tax bills to replace those fixing the newly-adjusted value which went out in late June.

“This year being the initial year of the program, we want to let the general public know a collectable designation on certain vehicles will occur,” Mr DeNoto said. “This could spell significant tax increases for those who own collectable class cars or antiques.”

That means a pristine, 1961 Jaguar XK 150 2 Door Roadster valued at as much as $95,000 would be taxed at its estimated value instead of at the $500 state minimum, according to the newly initiated program. Applications for Connecticut “Early American” motor vehicle plate application (form M-22) for any vehicle 25 years old or older can be obtained at the state DMV website: www.ct.gov/dmv.

First Selectman Herb Rosenthal said a number of people who own such vehicles complained about the increased valuation after receiving their initial 2007 tax bills in recent weeks.

“We want to be fair and give people who are affected by this new program advanced notice, so we retained the minimum $500 assessment for them for one last year,” Mr Rosenthal said. “But if they don’t apply for the ‘Early American’ plates by October 1, their 2008 motor vehicle taxes will reflect the most accurate valuation of any car over 25 years old.”

He said residents certainly do not have to obtain the special plates, especially if they are still using the vehicle for every day transportation, but it might help their pocketbook in the future.

“The people who might be affected, who have already taken our advice and changed over to the new plates say it is a quick and easy process,” Mr Rosenthal said. “To his credit, our assessor learned that more Connecticut towns were using this program and he adopted it here in Newtown starting this year.”

The state DMV website states “Early American” plates (also know as antique plates), refers to a license plate which is given only to a motor vehicle 25 years old or older, that is being preserved because of the historic interest and is not altered or modified from the original manufacturer’s specification. The fee for the plate is $92.

The Assessor’s office has established the new 2006 Grand List valuation program in accordance with Connecticut General Statute 12-71d.