GLASTONBURY — The Board of Finance on Monday morning set the town’s tax rate on real estate and “personal property,” or business equipment, at 37.3 mills for the fiscal year that starts July 1, a slight decrease from the current rate of 37.32 mills.
The board set the tax rate for motor vehicles at 29 mills, anticipating that the state legislature will cap motor-vehicle taxes at that level, as proposed by Gov. Ned Lamont.
The governor has proposed the cap on motor-vehicle taxes in an effort to ease the impact of the hot vehicle market on taxpayers, who may see lower-than-expected decreases — or even increases — in the assessments of existing vehicles. Ordinarily, vehicle assessments would decrease from year to year due to depreciation.
The board’s action on the tax rate for real estate and personal property means that taxpayers will receive bills figured at $37.30 for each $1,000 in assessed value of those types of property — two cents less than their bills per $1,000 of assessed value this year.
All Connecticut property is assessed at 70% of fair market value. But real estate is revalued every five years, while the values of motor vehicles and personal property are updated annually.
This isn’t a real-estate revaluation year in Glastonbury, although a revaluation is in progress that will affect tax bills starting July 1, 2023.
With the small change in real estate taxes, some taxpayers’ total bills may be affected more by the interplay of the higher-than-usual assessments and the reduced mill rate on motor vehicles.
The finance board set the tax rate on the basis of the $177.8 million combined town and education budget adopted last week by the Town Council.
The tax rate adopted by the board wasn’t a foregone conclusion. The board could have changed it slightly if it had changed the assumption as to the town’s tax collection rate for the coming fiscal year. The board decided, however, to adopt the 99.15% average collection rate assumption suggested by the town administration rather than the more conservative 99.1% assumption favored by some board members.
Town Manager Richard J. Johnson said the town’s actual collection rate has been running around 99.4% in recent years. But one board member warned that the rate may change due to the current “quite unsettled” financial situation.