Norwich – In one of its final acts in office, the departing City Council on Monday authorized a second round of motor vehicle tax bills to go out in January to cover the 7-mill increase in the motor vehicle tax enacted by the state legislature in adopting the final state budget.

Because Norwich’s tax rate at 40.52 is higher than the state-mandated cap of 39 mills, the city cannot set the motor vehicle tax rate higher than the state cap. But when Norwich officials set the city budget in June, they were forced to use Gov. Dannel P. Malloy’s proposed motor vehicle cap of 32 mills. The state legislature didn’t pass a final budget until October, setting the new cap at 39 mills.

The City Council voted 6-0 with one alderman absent Monday to send out second motor vehicle tax bills Jan. 1 for the 7 mills allowed to reach the new cap. The state will reimburse Norwich for a portion of the lost revenue for the 1.52-mill difference between the state cap and the city’s tax rate.