If the Car Tax Goes, Wallingford Would Lose $8.4 Million in Revenue

Governor Dannel Malloy wants to save Connecticut taxpayers money by eliminating the car tax on vehicles appraised at less than $28,000, as proposed in his 2014-2015 budget.

But not all Connecticut taxpayers want the relief, which would remove $8.4 million in revenue to Wallingford alone.

According to a Yankee Institute survey, 52 percent of voters polled were against removing the tax after being told that it could impact municipalities. Thirty-four percent of those polled supported the cut. 

The Yankee Institute, a free market and limited government think tank, questioned 500 likely Connecticut voters to complete the survey.

A number of small town leaders agree with voters who want to keep the car tax. Leaders traveled to Hartford on Monday to argue against the cuts, stating that property taxes would undoubtedly go up as a consequence.

"From what I’ve read about it is it’s just a sleight of hand thing, it’s not really doing the average guy any good," said Wallingford Town Council Chairman Robert Parisi. "The money doesn’t dissapear. If you take it from us you have to get it somewhere. You don’t make up $8 million by being frugal."

Parisi said this funding loss would trickle down so that, "one way or another, everyone feels a pinch."

A total of $633 million in state-wide municipal tax revenue is on the line if the car tax cuts move forward.

If the $8.4 million in Wallingford cuts go through, then the town could see a hike in its mill rate — the calculation of property taxes — just to make up that loss.

While the governor said in a letter to town leaders that this move will provide "tangible relief to our middle class," Malloy acknowledged that towns may have to make municipal service cuts without the revenue from car taxes.

"I understand that adjustments will need to be made locally, but I strongly believe that we should stand with them and find ways to make this work," Malloy said in the letter.

The governor added that many towns collect less than 90 percent of all car taxes owed, and that car tax revenue generally makes up 2 to 10 percent of town budgets.

See how the car tax removal will affect your town and nearby towns with our searchable database above. The data is from the state's Office of Fiscal Analysis.