CONNECTICUT GENERAL STATUTES §12-81(74) PROPERTY TAX EXEMPTION INFORMATION

PROPERTY TAX EXEMPTION APPLICATION FOR A NEW COMMERCIAL TRUCK,  TRUCK TRACTOR, TRAILER OR SEMITRAILER 

A property tax exemption is available for certain commercial trucks, truck tractors, tractors and semi-trailers pursuant to CGS §12-81(74). The exemption is available to two different classes of vehicles, depending their date of registration, GVW rating and use.  Exemption eligibility is dependent on meeting all qualifying criteria for the class.  The two categories of vehicle and qualifying criteria are listed below.

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To qualify for the exemption for vehicles used to “transport freight for hire ” (CGS § 12-81(74)(A)(i)), the following conditions must be met : 

  The property for which the exemption is sought must be a new commercial vehicle , meaning that its equitable or legal title has never been transferred by a manufacturer, distributor or dealer to anyone other than the owner who files this exemption application, or the owner on whose behalf this application is filed.

 The vehicle’s Gross Vehicle Weight Rating (or GVWR) must be in excess of 26,000 lbs .

 The vehicle must be used exclusively (i.e., 100% of the time it is used) for the interstate or intrastate transportation of freight for hire. The vehicle must be used by a “For Hire Motor Carrier”. This means an individual or legal entity (such as a company or corporation) that is compensated for transporting freight belonging to an unrelated party. Freight is defined as merchandise or commercial goods having value. Anything discarded as worthless (for example, garbage or food wastes) is not considered freight. However, certain recyclable materials are freight, since they have value. See “Exceptions” below for exclusions from the definition of freight.

A vehicle used by a “Private Motor Carrier” is not eligible for this exemption. A “Private Motor Carrier” is a business that uses a vehicle to transport its own products to a wholesale or retail outlet, or a business engaged in renting vehicles for use by others. However, if the rented vehicle is used exclusively by a “For Hire Motor Carrier”, it is eligible.

Exceptions   Although a vehicle may be used by a “For Hire Motor Carrier”, the type of freight transported may make it ineligible for this property tax exemption. Such is the case with respect to the transportation of freight excluded from federal regulatory oversight (i.e., items listed as exclusions in Chapter 135 of Title 49 of the United States Code). Examples of such items include ordinary livestock; wood chips; broken, crushed or powdered glass; agricultural or horticultural commodities other than manufactured products thereof and natural or crushed volcanic rock to be used for decorative purposes. The Assessor(s) has a copy of the federal code containing these exclusions.

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To qualify for the exemption for vehicles with a GVW rating in excess of 55,000 lbs . (CGS § 12-81(74)(A)(ii)), the following conditions must be met:

  The property for which the exemption is sought must be a new commercial vehicle , meaning that its equitable or legal title has never been transferred by a manufacturer, distributor or dealer to anyone other than the owner who files this exemption application, or the owner on whose behalf this application is filed.

 The vehicle’s Gross Vehicle Weight Rating (or GVWR) must be in excess of 55,000 lbs.

 The vehicle is not eligible for the exemption extended to vehicles under CGS §12-81(74) (A) (i), as delineated above. 

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In order to receive either property tax exemption, an M-65MV application (accompanied by all required documentation) must be filed with and approved by the Assessor(s) of the town in which the vehicle is subject to property taxation. The three-digit number on the vehicle’s registration (under Tax Town Code) indicates the town where the vehicle is taxed.

This exemption is available for five assessment years following the assessment year in which the vehicle is first registered .  An application must be filed in order for the exemption to be granted.  If there is no change with respect to the town in which an exempt vehicle is registered and there is no modification made to the vehicle since the initial application was filed, no application has to be filed for the balance of the exemption term after the exemption is initially granted.

If there is a change in tax town or modification to the vehicle since the initial application was filed, the timely filing of a new M65MV, accompanied by the necessary documentation, is required.

Please contact the assessor(s) of the town in which the vehicle is subject to taxation if you have any questions concerning this application.   

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