Sen. Kelly Slams State’s Failure to Fully Reimburse Towns for Car Tax Revenue Losses

June 13, 2022

HARTFORD – Senate Republican Leader Kevin Kelly (R-Stratford) released the following statement in response to CT Democrats celebrating the state’s new car tax cap at the same time the state is failing to fully reimburse all towns for related revenue losses, thereby resulting in new burdens on property taxpayers:


“At a time when the state has a record-breaking surplus and the opportunity to help families facing historic inflation, the Governor is breaking his promise to CT towns and shortchanging many. The Governor and legislative Democrats failed to fully reimburse all towns for revenue losses associated with the state’s new car tax cap, shortchanging towns, and making residents pick up the tab. A town like my hometown of Stratford is being shortchanged over $450,000. By only reimbursing towns for lost revenue based on the previous year’s car tax revenue, not the current year, dozens of towns are now facing a loss and that financial burden now shifts to local residents and property taxes.


“Further, the car tax cap results in far greater relief for individuals who own more expensive luxury vehicles, and very small relief for those with older and less expensive cars. The wealthy are getting the most relief from this policy, meanwhile many towns and their residents will see higher taxes to make up for the Governor’s broken promise to keep towns whole.


“Connecticut must do better for CT residents and further ease burdens as inflation soars. That’s why CT Republicans are pushing for a special session, to deliver far greater relief to working- and middle-class families, to deliver assistance to those who need it most and who have no relief in sight. If you think CT is still too expensive, if you think state taxes are still too high, please sign our petition at, and rally with us – starting with Torrington today, East Haven tomorrow, Stratford and Wallingford on Wednesday, and many more – and call on your lawmakers to act.”