Lawmakers consider end to car tax

HARTFORD, Conn. (WTNH) -- While we all like idea of not paying a car tax, it's likely we will hear from local leaders today who want to keep it.

Gov. Dannel Malloy is proposing to eliminate motor vehicle tax on cars valued at less than $28,000.

But if taxpayers stop paying car taxes that creates a hole in local community budgets. For example, the City of New Haven collects $15 million in car taxes every year. To fill that hole, cities and towns may just boost real estate taxes on houses and businesses.

This 'ax the car tax' idea has been proposed before. Republican governor Jodi Rell made a similar proposal in 2006. The bill never made it out of committee.

The Finance, Revenue and Bonding Committee will hold a public hearing on the governor's budget proposals beginning at 10:30 at the Legislative Office Building in Hartford.