A buried provision in Connecticut's tax assessment bill will change how your trucks, trailers, and equipment are taxed—whether your town previously adopted the rule or not.
Most Connecticut trucking and transportation owners don't realize that a significant change to how their equipment is taxed just became law. Buried in SB362—An Act Concerning Revisions To Statutes Relating To Municipal Property Tax Assessment—is a provision that will affect every business in the state with tangible personal property, from day one of the new assessment year.
Until now, Connecticut municipalities could choose whether to adopt cost-based depreciation schedules for tangible personal property—trucks, trailers, machinery, fixtures, and other business equipment. It was optional. Towns that didn't adopt it used different valuation methods.
SB362 removes that choice. Starting with assessment years beginning on or after October 1, 2026, cost-based depreciation becomes mandatory statewide. Every municipality must use it. Every business—regardless of size or industry—will have their equipment assessed under this method.
For trucking companies, this is concrete. Your fleet depreciates. Your trailers, tractors, and specialized equipment lose value over time. Under a cost-based depreciation schedule, that decline is reflected in your property tax assessment—which is how it should work. But the shift to mandatory, statewide application means:
If your town already adopted cost-based depreciation: No immediate change, but you'll now be locked into a statewide standard rather than a local one.
If your town did not adopt it: This is new. Your equipment assessments will shift. Depending on your fleet's age and composition, this could lower your tax burden—or expose previously unassessed property to taxation.
The key is that you won't know the exact impact until your municipality publishes its depreciation schedule under the new mandate.
The effective date is October 1, 2026. The provision applies to assessment years commencing on or after that date. This is found in Section 10 of SB362, on Page 10 of the bill.
That gives municipalities roughly two years to implement the change and gives business owners time to understand what it means for their specific situation.
Contact your town's assessor's office and ask whether your municipality has already adopted cost-based depreciation. If not, ask what schedule they plan to use starting October 2026. Request a copy of the depreciation schedule so you can model the impact on your fleet's assessed value.
If you have equipment in multiple towns, check each one—Connecticut allows some local variation in how the statewide mandate is applied.
This isn't a crisis, but it is a change that deserves attention. Property tax is a significant operating cost, and understanding how your assets will be valued under the new rule lets you plan accordingly.
For a detailed, transportation-specific breakdown of SB362 and other recent Connecticut tax changes affecting your business, a free resource guide is available through the Connecticut Trucking Association and local business groups.