Government Tax on Classic Cars

[69rt440]

Has anyone heard about the state of Connecticut trying to implement a $2500 Tax/Registration fee per classic car every year?

Apparently it was in this months Hemmings.

If this happens, I hope it does not open the door for all other states to follow!!!! 

[BananaDan]

Reason #476 as to why I hate that state.

[Ghoste]

I suppose we keep fighting them on the scrappage programs so they've decided to attact directly.

[RallyeMike]

Has anyone heard about the state of Connecticut trying to implement a $2500 Tax/Registration fee per classic car every year?

Somewhere along the line the govt forgot that it's not in the business of collecting money, but should be setting appropriate tax levels on appropriate items in order to provide essential services. For example, general, fair, and balanced taxes on transportation items should support essential transportation needs. A classic car owner should pay the same fees as everyone else with a registered car, and arguably less since they rack up so few miles.

The voters of that State needs to send the sponsor jackass of this bill a pink slip.

[Old Moparz]

Found this....

http://www.examiner.com/muscle-car-and-classic-car-in-new-york/insane-proposed-tax-increase-for-ct-antique-car-owners

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Insane proposed tax increase for CT antique car owners

Diego Rosenberg, NY Muscle Car and Classic Car Examiner
April 21, 2011

I've received an email from Old Cars Weekly stating that the Connecticut Legislature has proposed a 400% tax increase on the personal property taxes paid for antique vehicles; it raises the tax cap from $500 to $2,500 for each registered classic car.

Luckily, the Historic Vehicle Association, an organization founded by Hagerty Insurance that is dedicated to protecting the rights of collector car owners, is lobbying opposition. "We feel this bill is unfair and discriminatory, won't accomplish its goal, and could cost more in the long run by losing jobs and reduced economic activity," says Carmel Roberts, Director of Government Relations for the Historic Vehicle Association. "The negative impacts caused by this proposed tax far outweigh any potential benefit."

They list the following negative impacts of this proposal:

• This 400% tax increase focuses on one percent of the population potentially causing an antique vehicle owner to pay more vehicle tax than household property tax.

• This attempt to raise $2 million for local municipalities could potentially cost the state money through deferred registration of antique vehicles where people are tempted to register their cars in other states or sell their antique vehicles outright.

• Nationally, antique car owners spend $35 billion each year and donate more than $59 million to charitable organizations. Connecticut car clubs host hundreds of events each year and support for these events, charities and local business revenue could suffer or completely disappear. Less antique car use would have a negative overall economic impact in the State of Connecticut.

The Historic Vehicle Association urges everyone to contact Connecticut State Legislators to encourage them to oppose House Bill 5580 - find more information at www.historicvehicle.org/Help-Stop-CT-Tax-Increase.

[Old Moparz]

And this article saying it's a bunch of BS....

http://wheels.blogs.nytimes.com/2011/04/07/a-fake-tax-rattles-classic-car-buffs/

-----------------------------------------------------

A Fake Tax Rattles Classic Car Buffs

By MICHAEL BARBARO

From our colleagues at City Room:

As April Fool's gags go, the Shelby American Automobile Club's 2011 spoof did not seem especially convincing. Until, that is, hundreds of classic car lovers across the country were duped, became enraged and started to organize against a nonexistent threat.

A few days ago, the Connecticut club printed a fake front page of The New York Times that included what purported to be a major scoop: to close the federal deficit, Senator Charles E. Schumer of New York was proposing a federal tax on specialty automobiles.

"Collecting classic cars is in the province of the haves — not the have-nots," the article quoted Mr. Schumer, a Democrat, as saying. "Those who own these cars can afford a hefty tax on that ownership."

The tax, he explained, would amount to a staggering 10 percent of a car's value, and the Internal Revenue Service would open a new division to collect the fees.

Red flags seemed to dot this particular issue of The Times, however. The article about the car tax appeared next to another about a study showing that recreational polka dancers have significantly lower rates of colon cancer. (A diet of kielbasa and stuffed cabbage was cited as a probable explanation.) Oddly, all of the quotes appeared in italics. And the daily weather report was replaced by curious trivia about cars and horses in the 1900s.

Collectively, the page "should have hit readers in the head, so they knew this was a joke," said Rick Kopec, the national director of the Shelby American Automobile Club, named after the famed car designer Carroll Shelby.

It did not. The fake edition of The Times was e-mailed to about 3,000 members of the car club, who forwarded it to friends, who posted it on Facebook and car blogs. In roughly the time it takes for a 1962 AC Shelby Cobra to go from zero to 60, the reality-distorting, anxiety-amplifying powers of the Internet had transformed the spoof into a legitimate news story.

Within days, Keith Martin, who publishes the Sports Car Market, started receiving e-mails and calls from horrified car collectors. "I will go broke," one caller groused. "I won't be able to afford my cars."

Hundreds of messages poured into the offices of a trade group for car manufacturers and distributors known as SEMA, the Specialty Equipment Market Association. Steve McDonald, the group's vice president for government relations, fielded many of them. He made a few inquiries — and a visit to the Web site of The Times — and quickly realized it was a hoax.

"This thing went crazy on us," he said.

The article, as outlandish as it seemed, had struck a chord. "Car guys assume that everyone is trying to take their cars away," Mr. Martin said. "All politicians want us to ride bicycles, take buses or, best case, drive Priuses."

The implausible classic car tax, he explained, felt just plausible enough.

With the uproar reaching its peak, Mr. McDonald, of the car trade group, reached out to Mr. Kopec and advised him to issue some kind of formal clarification. The article, Mr. Kopec wrote in a letter to club members, "reached a much wider audience than anyone could have predicted." He added, "We deeply regret if taking this story seriously has caused anyone undue distress or embarrassment."

No one seems more bemused than Mr. Schumer, whose first (and most beloved) car was a 1971 Plymouth Duster, and who, for the record, is not proposing a classic car tax.

"Senator Schumer firmly believes in every American's right to have tax-free fun, fun, fun, until their daddy takes the T-Bird away," said Mike Morey, a spokesman for the senator.

The spoof, Mr. McDonald said in an interview, "was more successful than the author ever intended."

[1970Moparmann]

This is why I will be moving to Costa Rico at some point.   The Government officials are killing this country.  There's change alright........

[bakerhillpins]

I think its a leftover prank from April Fools day on car sites. I seem to recall the last time I saw this it was about NY.   

[derailed]

Throw that one right in with the "there gonna take our guns away file".

[1969chargerrtse]

So glad it's not true.  Sad to say I would sell my charger if it was true.

[69rt440]

I thought it might be a hoax too until I saw this http://classiccars.about.com/b/2011/...fools-hoax.htm

What a disaster!!!!

[Old Moparz]

I thought it might be a hoax too until I saw this http://classiccars.about.com/b/2011/...fools-hoax.htm

What a disaster!!!!

Which headline on that page is the disaster?   

[69rt440]

Article date being April 13, 2011 on Legislation H.B. 5580 by Tony and Michele Hammer.

This could be a terrible situation....

[69rt440]

In the search box type in "April 13, 2011" and all of the articles of that date come up.

[Old Moparz]

Okay, the article has a link at the end of it that states the bill died.....

http://www.semasan.com/main/main.aspx?id=62942

URGENT LEGISLATIVE ALERT (UPDATE)
Connecticut Bill to Further Restrict Access to Antique Vehicle Registration and Increase Fees Dies as Session Ends

Legislation (H.B. 5580) that threatened to increase the age requirement for vehicles eligible for registration as "antique, rare or special interest motor vehicles" died when the Connecticut Legislature adjourned for the year.  The bill had been approved by the Joint Committee on Planning and Development and amended to increase the age requirement for registration as an antique to 30 years old and increase the tax assessment amount on vehicles registered as antiques to $2,500.  Currently, vehicles 20 years old or older are eligible for antique status.  Antique, rare or special interest motor vehicles are currently assessed at a rate of $500 and owners pay personal property taxes on that amount.

Thank you and congratulations to all who participated in opposing this bill.

[66FBCharger]

The bill failed, but I am sure they will keep trying until they pass it in the future. It will give them more money to piss away!
Since I have 5 cars that are more then 20 years old and 3 are registered as antique I would be very unhappy if they assessed the value for tax purposes 5x higher than they do now.
Yes I live in Ct., one of the states with the highest taxes.

[69rt440]

I guess it was not a hoax after all.

Lets all hope the some tax happy politician does not decide to look at this again in the future.

I believe this still is America

[bakerhillpins]

Has anyone heard about the state of Connecticut trying to implement a $2500 Tax/Registration fee per classic car every year?

The original post and the bill that died are very different in their statements about due taxes and I think that is what normally happens with stuff that goes "net".

The original post suggests a 2.5k dollar registration FEE, the bill that got killed was doing 2 things:

• Age of vehicle to be considered antique will be raised to 30yrs.
• Assessed value for tax/registration purposes will be 2.5k rather than 0.5k.

In effect they are asking for a 5x increase in reg fees assuming that the tax rate stays static, not a flat $2500 per car for the fee. The 2.5k is effectively giving a bottom dollar value to a vehicle over 30yrs old so that value determination doesn't cost more than the taxes raised.

[Tilar]

Throw that one right in with the "there gonna take our guns away file".

That one will never happen. There are more registered hunters than there are members of the military.

[Budnicks]

Has anyone heard about the state of Connecticut trying to implement a $2500 Tax/Registration fee per classic car every year?

Somewhere along the line the govt forgot that it's not in the business of collecting money, but should be setting appropriate tax levels on appropriate items in order to provide essential services. For example, general, fair, and balanced taxes on transportation items should support essential transportation needs. A classic car owner should pay the same fees as everyone else with a registered car, and arguably less since they rack up so few miles.

The voters of that State needs to send the sponsor jackass of this bill a pink slip.

I would agree get rid of the politicians, not the classic cars they are trying to profit off of... If that law passes, only wealthy people in the state will be able to own classic cars... Govt. is for governing laws that are instituted by it's constituents needs, not making new laws at will "to fit there pet projects"... I think they have lost site of reality... Vote them out...

[66FBCharger]

Has anyone heard about the state of Connecticut trying to implement a $2500 Tax/Registration fee per classic car every year?

The original post and the bill that died are very different in their statements about due taxes and I think that is what normally happens with stuff that goes "net".

The original post suggests a 2.5k dollar registration FEE, the bill that got killed was doing 2 things:

• Age of vehicle to be considered antique will be raised to 30yrs.
• Assessed value for tax/registration purposes will be 2.5k rather than 0.5k.

In effect they are asking for a 5x increase in reg fees assuming that the tax rate stays static, not a flat $2500 per car for the fee. The 2.5k is effectively giving a bottom dollar value to a vehicle over 30yrs old so that value determination doesn't cost more than the taxes raised.

What happens to all of us in Ct. is we pay property tax yearly to the town the vehicle is registered in (The address the vehicle is registered to). Right now any car that has antique plates can only be assessed (for tax purposes) a value of $500. The value is multiplied by the mil rate set by the town, each year. The mil rate changes every year (very rarely does it decrease). I pay very little per car, I paid I believe $12.50 per car this year, but I don't put a lot of miles on. Out of the three that are registered, one we use maybe 1000 miles a year, the second is not driven presently because it is not insured and the third is being reassembled.
I do object to the idea of a 5X increase in the property tax for my vehicles in one year's time. It is not a lot of money, but it is the idea of the politicians constantly nickel and diming us to death!

[bakerhillpins]

If that law passes, only wealthy people in the state will be able to own classic cars...

Note that the original post was incorrect with regard to fee to be instituted by the law... it's not a 2500 fee, it's a fixed appraised value which equates to a 5x increase in current reg fees if the tax rate remains static.

How that equates to who can afford...  

[bakerhillpins]

What happens to all of us in Ct. is we pay property tax yearly to the town the vehicle is registered in (The address the vehicle is registered to). Right now any car that has antique plates can only be assessed (for tax purposes) a value of $500. The value is multiplied by the mil rate set by the town, each year. The mil rate changes every year (very rarely does it decrease). I pay very little per car, I paid I believe $12.50 per car this year, but I don't put a lot of miles on. Out of the three that are registered, one we use maybe 1000 miles a year, the second is not driven presently because it is not insured and the third is being reassembled.
I do object to the idea of a 5X increase in the property tax for my vehicles in one year's time. It is not a lot of money, but it is the idea of the politicians constantly nickel and diming us to death!

I hear you brother!    We have the same thing going on here in NH. I don't like the nickle and dimeing us either.  

I just wanted to try to point out the difference between the original post which suggested a flat 2.5k fee and the bill that was defeated..  

[Budnicks]

If that law passes, only wealthy people in the state will be able to own classic cars...

Note that the original post was incorrect with regard to fee to be instituted by the law... it's not a 2500 fee, it's a fixed appraised value which equates to a 5x increase in current reg fees if the tax rate remains static.

How that equates to who can afford...  

Thanks , I see that now, the politicians that want to increase the rates 5X's the current tag fees is still bullshit, vote them out, still applies...