Car Tax Cut Acceleration Hits a Wall

As expected the Senate Finance Committee this afternoon killed a proposal by House Republicans to finish implementation of the car tax cut by phasing out the remaining 30% over the next six years. The move leaves intact state reimbursement for the locally-imposed property tax at an aggregate of $950 million annually. At present, that amount covers approximately 70% of the tax for the average affected car owner. The commitee action comes two days before House and Senate budget conferees are expected to begin negotiating differences in the respective proposals.