The Middletown Tax Assessor's office has been fielding complaints from taxpayers who have found that they value of their used car has inexplicably increased.
That's right. The car is a year older, but it's worth more.
"For every complaint we've gotten, I've checked the book value, and it, in fact, has increased," said Damon Braasch, Middletown's Tax Assesor. "By state law we are required to assess vehicles as every Connecticut city is, using the NADA (National Automobile Dealers' Association) guide."
Braasch said he has no idea why the used car values would be on the rise, but he has some speculation. He noted that SUVs may be on the rise as the price of gas has decreased. With gas prices over $4, last year, SUVs had dropped considerably in value, and may be on the rise. In addition, the market for all used cars has gone up as the economy has remained weak.
Braasch said that anyone with a complaint can attend a Board of Assessment Appeals meeting. The next one is scheduled for September. However, he indicated that most of the increase in assessments only amount to a few additional dollars in taxes.
"But for some people it's the principle," Braasch said.
The Eye has a call into the NADA offices inquiring about the rise in values, but at the time of this posting, we have not received a reply.
It's called the Free Market at work. The market is based on supply and demand. If demand goes up for used cars and/or the supply goes down, the price goes up. The supply of used cars was reduced drastically last year because of an ill-conceived Federal Program called cash for clunkers. People were given other people's tax dollars to turn in their old cars for new ones. The old cars then were destroyed causing an imbalance in the supply of used cars, making every remaining used car worth more. Economics 101.
ReplyDeleteIt may be due to the economy--people are more interested in buying used cars which increases demand and thus used car prices.
ReplyDeleteThe main reasons that the prices have risen is the "cash for clunkers" program last year which rid the roads of thousands of used cars driving up demand for used vehicles.
ReplyDeleteI think only one reason for this the prices. Used cars available in good affordable prices but don't forget about the millage of those cars while buying.
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