“Previously, towns used something like Kelly Blue Book to determine a car’s market value. For example, the 2022 Chevy Equinox news car has a Kelly Blue Book value of $19,672. Now, what a car is actually worth if it’s sold does not matter. Instead, towns are required to use the car’s original MSRP, and then use a set depreciation schedule. For the news car, the MSRP is $28,295, and because it’s 3-years-old, you’d multiply that by .80 in Southington. The car’s value is now $22,636, almost $3,000 more than the old system.
While local governments have to use the MSRP, towns can decide if the depreciation schedule starts at 85% or 90%." read more |