SALT Report 3143 – Michigan Legislators passed HB 4234 (and SB 89) which reduces the amount of sales tax paid on the purchase price of a vehicle when the consumer has a trade-in vehicle. The law states that “Beginning December 15, 2013, except as otherwise limited in this subparagraph, the agreed-upon value of a motor vehicle or recreational vehicle used as part payment of the purchase price of a new motor vehicle, used motor vehicle, new recreational vehicle, or used recreational vehicle, if the agreed-upon value is separately stated on the invoice, bill of sale, or similar document given to the purchaser. For purposes of this subparagraph, the agreed-upon value of a motor vehicle or recreational vehicle used as part payment shall be limited to the lesser of $2,000.00 or the agreed-upon value of the motor vehicle or recreational vehicle used as part payment.” Legislation has been approved by the governor and has been filed with the secretary of state.
The effective date of this legislation is December 15, 2013.
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