Car tax hike in New Haven

NEW HAVEN, Conn. (WTNH)–Living in the Elm City is about to get a little more expensive if you own a car. Motor vehicle taxes are going up 5 mills starting with next month’s tax bill.

“I don’t like it at all. I’m originally from Pennsylvania where we don’t pay any taxes so any taxes is high to me but going up, yeah, that’s pretty bad,” said New Haven resident Jewel Bowman.

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“I think I pay enough taxes right now as it is. I won two cars, you know. They’re pretty, they’re high enough,” said Dion Younger.

Mayor Toni Harp says the hike had to happen.

“We have gotten the state budget and what we’ve discovered is our projection for state funds is less than what we’re getting by at least $6-million.It could be more and so we need those resources,” said Harp.

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The Board of Alders voted to increase car taxes from 32 mills to 37 mills back in June when the city approved their budget. A cap at the state level wouldn’t allow them to follow through with it but the new state budget increased that cap to 39 so now New Haven can move forward with the increase.

“If we absolutely could balance the budget without raising the taxes we would would do that. I’m a taxpayer, too. I understand. I don’t like having to pay but then I do enjoy having those services,” said Harp.

The increase means the higher the value of a car the more an owner will shell out. For example, under the old mill rate a car assessed at $10,000 meant a $320 tax bill. With the new rate that climbs to $370. A $40,000 car meant a $1280 yearly tax bill. Now that will be an additional $200.

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