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Old 01-07-2007, 12:52 PM
 
265 posts, read 1,038,431 times
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Default Confused about Personal Property taxes

I've just begun to investigate the possibility of moving to Connecticut (either central or The Valley) because the property-taxes here on LI have spiraled way out of control. I'm in touch with several realtors because of my requirements (2500+ sf ranch style house/handicap accessible/no stairs), one of which is the house must have public water (not a well) which eliminates a lot of areas. I'm keeping my fingers crossed for Simsbury which seems so far to be very similar to what I would like.

The home prices appear to be about $200K less in these CT areas than they would be for the same house on LI (and often the CT house is on more land). The property taxes are a about ˝ what LI's are!

But in researching CT taxes I am confused about the Personal Property tax. We don't have that in NY. I haven't been able to find out anything clear online that says how it works, so I'd love to get a hands-on explanation from CT residents! First,

CARS:
Trying to figure out how CT's yearly car-tax thing works. You pay sales tax when you buy it, and a registration fee every year, and also a yearly tax as long as you own it? And the yearly tax is based on the car's market value?

So for instance let's say I move to CT in 2007 and I register my car. In 2002 I came into a little windfall and splurged on a 2002 Lexus ES300. The car was $32K new, and I paid 8.65% sales tax (4.5% is NY State sales tax, the other 4.15% is the county's sales tax). So all my state and local sales taxes on the car have already been paid.

If I register the car in CT in 2007 it would be five years old. I wouldn't have to pay SALES tax on it again, would I? Because I bought it in NY when I was living in NY… not in CT. But I saw something online that says if you bought your car out of state and you paid less in sales tax to that state than you would have paid in CT, you have to pay CT the difference when you register it. I paid 8.65% total sales tax, but only 4.5% of that was NY State sales tax. So would I have to pay 1.5% sales tax when I register my five-year-old car in CT? That sounds rather insane to me, but figured I'd better check.

Even if the sales tax thing wouldn't apply, it seems like once I register the car in CT, I'd have to pay a yearly personal-property tax on my car (in addition to the yearly fee for license plates). Is that right? What would that yearly car tax be based on? A percentage of the car's market value each year, as determined by the Dept of Motor Vehicles? So the car tax amount will decrease each year for that car?

On another post, someone mentioned an extra tax or surcharge on "luxury" cars. Is there a way to find out what cars fall into that category in CT? Or better yet, a way to find out what my yearly car tax would be if I moved here? Some of the numbers I've seen in other posts are pretty scary. I know the tax is deductible (just like property taxes) but if it's going to be say $900 a year, then I'd have to consider that the same as the property tax on the house being $900 a year higher.

OTHER PERSONAL PROPERTY:
I'm COMPLETELY confused about this. Do CT residents have to pay a yearly tax on all the personal property they own? (that would be awful) Or only on certain things? Again for instance suppose I move to CT and bring with me my car and all my furniture and personal belongings (clothes, computer, TVs, yadda yadda) from the house I now own. Other than the car, are any of those other personal-property items subject to the yearly tax? (I sure hope not, because that would be a nightmare to document and keep track of, for one thing!)

Or does "personal property" mean only a car or boat or other vehicle, and not "personal belongings and home furnishings"? What's confusing me is that I've always thought of Personal Property in the insurance sense (personal belongings and furnishings) so the idea of maybe having to pay a yearly tax to use such things that one already owns is kind of boggling my mind right now!

Help?
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Old 01-07-2007, 01:48 PM
 
Location: Cheshire, Conn.
2,102 posts, read 5,006,820 times
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Individuals pay personal property tax on vehicles. Most of the other personal property taxes are for corporations (carpeting, furniture and fixtures, phone systems, computer equipment, etc.).

Personal property taxes are YEARLY for vehicles REGISTERED in a Connecticut town on October 1st of any given year. The taxes are due 9 months later on July 1st.

Taxes are calculated using 70 percent of an asset's value times that jurisdiction's mill rate.

Mill rates typically rise year to year until that city or town has a revaluation.

Higher-end towns generally have lower mill rates. Simsbury is 35.9 mils ($35.90 per thousand dollars of assessed property). For Simsbury, a model year 2002 vehicle would be close to the average age. I wouldn't expect the taxes on a 5-year old Lexus ES300 to be more than $400 per year. You would NOT have to pay sales tax again since you are not repurchasing the vehicle. Clothing is sales tax exempt as long as the price of a single item is below $75.

I am originally from New York State...
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Old 01-07-2007, 03:55 PM
 
265 posts, read 1,038,431 times
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Many many thanks... whew! I am relieved. I had visions of having to pay a yearly use tax on almost everything I might bring in from LI!

I see where the confusion arose: That the tax does apply to certain things like furniture, computer, etc but only if the owner is a business rather than an individual.

Thanks again, you've helped a lot!
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Old 01-08-2007, 01:51 PM
 
Location: in a house
5,852 posts, read 1,462,653 times
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Quote:
Originally Posted by Rich Lee View Post
Individuals pay personal property tax on vehicles. Most of the other personal property taxes are for corporations (carpeting, furniture and fixtures, phone systems, computer equipment, etc.).

Personal property taxes are YEARLY for vehicles REGISTERED in a Connecticut town on October 1st of any given year. The taxes are due 9 months later on July 1st.

Taxes are calculated using 70 percent of an asset's value times that jurisdiction's mill rate.

Mill rates typically rise year to year until that city or town has a revaluation.

Higher-end towns generally have lower mill rates. Simsbury is 35.9 mils ($35.90 per thousand dollars of assessed property). For Simsbury, a model year 2002 vehicle would be close to the average age. I wouldn't expect the taxes on a 5-year old Lexus ES300 to be more than $400 per year. You would NOT have to pay sales tax again since you are not repurchasing the vehicle. Clothing is sales tax exempt as long as the price of a single item is below $75.

I am originally from New York State...
You seem to be the go to person, so could you tell me what the property taxes for New Canaan, Fairfield or Westport would be on a home around $400-500k? And how much is the state income tax? Also, state income tax? We are trying to see if it makes sense to live in Ct. or Ma. since the areas we are looking at in both states are about the same in price. Would you say it is unheard of to buy a home under $500k with decent square footage in the Fairfield area or should we stick with the suburbs of Ma.?
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Old 01-11-2007, 10:16 AM
 
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I'd suggest going to a website and checking real estate listings. There may be houses in Fairfield for 500k, although I wouldn't hold my breath. As for New Canaan and Westport, you're talking condo, in that price range. Towns that have businesses, like Westport and Fairfield, will have lower property taxes than New Canaan. New Canaan does have businesses but not as many as the other two towns, which goes a long way toward offsetting the property taxes. If you really want to pay high property taxes, look in Weston.
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Old 01-11-2007, 11:46 PM
 
Location: Cheshire, Conn.
2,102 posts, read 5,006,820 times
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Quote:
Originally Posted by puffle View Post
You seem to be the go to person, so could you tell me what the property taxes for New Canaan, Fairfield or Westport would be on a home around $400-500k? And how much is the state income tax? Also, state income tax? We are trying to see if it makes sense to live in Ct. or Ma. since the areas we are looking at in both states are about the same in price. Would you say it is unheard of to buy a home under $500k with decent square footage in the Fairfield area or should we stick with the suburbs of Ma.?
I apologize for not responding sooner. I will check the local MLS for this area tomorrow. It's unavailable from midnight to 6 am daily. (It's not as user-friendly as the Statewide MLS that covers the vast majority of the state.)

Last edited by Rich Lee; 01-11-2007 at 11:47 PM.. Reason: Clarification.
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Old 01-12-2007, 07:53 AM
 
Location: Cheshire, Conn.
2,102 posts, read 5,006,820 times
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Quote:
Originally Posted by Rich Lee View Post
I apologize for not responding sooner. I will check the local MLS for this area tomorrow. It's unavailable from midnight to 6 am daily. (It's not as user-friendly as the Statewide MLS that covers the vast majority of the state.)

Here we go...
FAIRFIELD
I took listings from three (3) different house styles all with a similar list price for the following:
$439,000 => $330,750 x 16.67 mils = $5,514 (Colonial)
$439,000 => $319,900 x 16.67 mils = $5,332 (Ranch)
$439,900 => $290,159 x 16.67 mils = $4,837 (Cape)

WESTPORT [there are only three (3) listings priced between $400,000 - $500,000]
$489,000 => $324,400 x 12.97 mils = $4,207 (Ranch)
$495,000 => $346,000 x 12.97 mils = $4,488 (Antique)
$497,000 => $424,500 x 12.97 mils = $5,506 (Ranch)

NEW CANAAN - the lowest-priced listing is $699,000 with taxes of $5,572.

I hope that this helps.
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Old 01-19-2007, 06:03 PM
 
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I'm thinking about moving from LI to CT as well, and I suspect that auto insurance is much lower in CT, so even with paying car tax you come out ahead or atleast break even in comparison...not sure though.
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Old 01-19-2007, 06:55 PM
 
Location: Cheshire, Conn.
2,102 posts, read 5,006,820 times
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It's not that much lower, but it does depend on one's ZIP code.
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Old 01-26-2009, 05:59 PM
 
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Do you happen to know if CT assess the taxes in arrears? So, the tax you get billed is for the period ending 9/30? Thank you in advance.
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