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Titles for Collector Cars

So Where Are We on ObtainingTitles For Collector Cars??

The Department of Motor Vehicles has a regulationfor issuing titles for our collector cars. That regulation has not been updated to reflect the change made to the State Statutes via Public Act 14-130 which changed the requirement that model year 1981 and older vehicles don’t need titles to vehicles 20years old and older don’t need titles. The current DMV regulation has a couple of provisions in it that make it prohibitive to obtain a title for our collector cars. We believe these provisions are unnecessary and will be looking to work with DMV to change their regulation. The two main problems we see with the current DMV regulation is that if we don’t have a valid out-of-state title for our collectorcar we will need to post a surety bond for our cars inaccordance with Section 14-176 of the state statutes.The process to post a surety bond is cumbersome, cost-prohibitive, and discourages us from obtaining titles for our vehicles. We feel that this provision should not be necessary if our collector vehicle has been registered in the State of Connecticut for a reasonable period of time (say 3 to 5 years). We would like the need to post a bond to be waived if that is the case. The second provision we have difficulty with is the requirement to submit a sworn statement that the vehicle has been maintained or restored to a condition that substantially conforms with the original manufacturer’s specification. We believe we should be able to obtain a title for our motor vehicles,regardless of whether they have modifications. I am drafting a letter to the DMV to request them to revise their regulation to make it easier for auto hobbyists to obtain titles for their motor vehicles, and offer to discuss the issue with them. While our past efforts have not been successful, it is worthy of further pursuit. 

Legislative Report

Legislative Report Dave Bajumpaa

The 2022 State Legislative Session began on February 9th and ended on May 4th. We have retained the services of Hughes and Cronin Public Affairs Strategies to monitor legislation related to the antique auto hobby, as we have done in previous sessions. In this monitoring capacity, Hughes and Cronin informs us of the pending legislation. We report to you on any legislation potentially impacting the hobby and ask you to contact your legislators and help get favorable legislation passed, and unfavorable legislation defeated (i.e., a "grass roots" approach).
There was no legislation introduced in the 2022 Legislative Session that adversely impacted the antique auto hobby. The table included in this newsletter summarizes the final status of bills related to the hobby and other transportation related matters of interest that have been introduced in the 2022 Legislative Session. Updates to the table from the previous newsletter are noted by revision bars in the right-hand margin.In the last few days of the Legislative Session, the State House and Senate have passed a budget for the next Connecticut fiscal year (starting this July) that was signed by the Governor. The 673 page budget bill (House Bill 5506) was delivered to the House members very early Monday morning May 2, and was adopted along with two amendments (and House Amendments LCO #6212 and LCO #6345) late that day. The Senate passed the bill on May 3rd. This budget bill as amended was signed by the Governor on May 7th and became Public Act 22-118. Good news for the antique auto hobby as nothing adverse to our hobby is included in this budget bill/public act. The maximum $500 assessment on antique, rare or special interest motor vehicles was not changed as shown on Page 715 of 739 of Public Act 22-118.
On Page 550 of 739 of Public Act 22-118, the maximum mill rate that a motor vehicle can be taxed at by municipalities is reduced from 45 to 32.46 mills ($32.46 per year for every $1000 of assessed value of a motor vehicle) effective immediately. This should be reflected in the motor vehicle tax bill we receive this July from our cities and towns. So, if you live in a city or town will a mill rate greater than 32.46 mills, the property tax bill on your motor vehicles will be reduced. If the mill rate in your municipality is less than 32.46 mills, there will be no reduction in the
property tax on your motor vehicles. Later provisions of the bill detail how these municipalities with a mill rate greater than 32.46 can be reimbursed from the state for the lost revenue.
On Page 709 of 739 of Public Act 22-118, the following depreciation schedule for the municipality assessed value for motor vehicles as noted below:
For assessment years commencing on or after October 1, 2023, the following schedule of
depreciation shall be applicable with respect to motor vehicles based on the manufacturer's
suggested retail price of such motor vehicles,provided no motor vehicle shall be valued at an
amount less than five hundred dollars: 

Age of Vehicle Percentage of Manufacturer’s Suggested Retail Price (MSRP)
Up to year one Eighty per cent
Year two Seventy-five per cent
Year three Seventy per cent
Year four Sixty-five per cent
Year five Sixty per cent
Year six Fifty-five per cent
Year seven Fifty per cent
Year eight Forty-five per cent
Year nine Forty per cent
Year ten Thirty-five per cent
Year eleven Thirty per cent
Year twelve Twenty-five per cent
Year thirteen Twenty per cent
Year fourteen Fifteen per cent
Years fifteen to nineteen Ten per cent
Years twenty and beyond Not less than five hundred dollars 

So, the concept of House Bill 5043 that was reported on in the last couple of 4C’s newsletters has been included in this public act. The minimum value of $2000 contained in House Bill 5043 was reduced to
$500 in the public act. This lines up the depreciation schedule minimum assessed value with the separate
unchanged maximum $500 assessment statute for antique, rare or special interest vehicles. Overall, I
view this as a good thing since it adds certainty to what the assessed value of any motor vehicle will be
as a vehicle ages. I would note that the above depreciation schedule could have been clearer for vehicles twenty years old and older. "Not less than $500" by itself does not overtly specify what percentage of MSRP applies to those vehicles. Since it is depreciation, not appreciation, it would be reasonable to conclude a 20
year old or older vehicle would be assessed at no more than 10% of its MSRP (based on the 15 to 19 year old percentage) or a minimum of $500, whichever is higher.Let’s take an example of a new Tesla with a MSRP of $100,000. In the first year, the assessed value would be $80,000 and the tax would be 80 times the mill rate in your city or town. If your town has a mill rate of 30, the property tax you would pay on that brand new Tesla would be 80 times 30 or $2400 for that year. In the future, when that Tesla becomes seven years old, it would be assessed at $50,000, and the property tax would be 50 times 30 or $1500 for that year (provided the mill rate in your town does not increase. In the future, when that Tesla reaches 15 years old or older, it would be assessed at 10% of it's original $100,000 MSRP or $10,000 and the annual property tax would be $300 (again provided the mill rate in your town does not increase). Arguing the value is less than
$10,000 would be difficult, but at least the assessor in your town should not be able to assess the vehicle at a value higher than $10,000. Regarding this Tesla example, in 20 years the vehicle could get Classic Vehicle plates and the maximum $500 assessment would be applied to that Tesla since it would fall under the definition of an Antique, Rare or Special Interest Motor Vehicle as the Statutes currently allow.
So why does the depreciation schedule specify “No less than $500” for vehicles 20 years old and older? I
believe the intent of "Not less than $500" was to cover older motor vehicles. For example, a 1965 Mustang
with a $2427 MSRP would be assessed a $500 rather than $10% of the MSRP or $243. Note that the effective date of this depreciation schedule is October 1, 2023, so this new method determining the assessed value of motor vehicles will not be implemented until we receive our motor vehicle property tax bills in July 2024.
As a comparison, Massachusetts applies an annual state-wide excise tax on motor vehicles. To determine
the assessed value of a motor vehicle, Massachusetts also uses the MSRP and the following depreciation
schedule. The Massachusetts excise tax rate is $25 per each $1000 assessed value of a motor vehicle (or
an effective mill rate of 25): Age of Vehicle Massachusetts -Percentage of Manufacturer’s Suggested
Retail Price (MSRP)
Up to year one Ninety per cent
Year two Sixty per cent
Year three Forty per cent
Year four Twenty five per cent
Year five and onwards Ten per cent
Source for Massachusetts depreciation: Massachusetts General Laws Chapter 60A Section 1 and www.mass.gov/guides/motor-vehicle-excise.So, as noted above, the current motor vehicle depreciation schedule is much more rapid in Massachusetts than what is provided in Public Act 22-118 for Connecticut motor vehicles starting with our July 2024 motor vehicle property tax bills.

OTHER BILLS:
Senate Bill 333 is the annual DMV “clean up” bill The bill was approved by the Senate, the House and
the Governor signed Public Act 22-44 on May 17th The bill is not adverse to the hobby.
Senate Bill 79 proposed to make any surcharge imposed on the registration of a motor vehicle, including the "Federal Clean Air Act fee" and the "Passport to the Parks Fee", optional for the registrant, and limit the amount of the fee for the registration of a motor vehicle to the actual cost incurred by DMV to process such registration. This bill was referred to the Transportation Committee and died.
House Bill 5422, among other things, requires decibel level testing for motor vehicles during emissions
testing. This bill was referred to the Appropriations Committee and did not pass. Titles and Composite Vehicle License Plates: 
Regarding motor vehicle titles and obtaining Classic Vehicle plates for composite motor vehicles, I have
not yet gotten a response from the DMV regarding our written request to meet. I would note that the new
depreciation schedule for all motor vehicles contained in Public Act 22-118 (discussed above and effective
for our July 2024 motor vehicle tax bills) may alleviate the property tax concerns composite motor vehicle owners have been dealing with.