HB 5172 Summary

• Effective October 1, 2024, tax collectors must notify the Commissioner of Motor Vehicles of delinquent motor vehicle property taxes, and the commissioner shall not issue vehicle registration until the tax obligation is legally discharged.

• Establishes a new depreciation schedule for motor vehicles based on manufacturer's suggested retail price, ranging from 80% value in year one to a minimum of $500 for vehicles 20+ years old, replacing previous valuation methods.

• Secretary of Office of Policy and Management, in consultation with the Department of Motor Vehicles, shall establish annual guidelines for motor vehicle valuation to be used by municipal assessors starting October 1, 2024.

• Extends the deadline for motor vehicle registration during assessment years from August 1 to September 30 to qualify for property tax liability in that year, and allows municipalities to establish fines up to $250 for owners failing to register eligible vehicles.

• Clarifies that nonpermanent modifications and attachments to commercial motor vehicles are classified as tangible personal property subject to taxation, and allows assessors to determine whether modified commercial vehicles are valued under the new motor vehicle schedule or as personal property.