Governor Snyder Signs Tax Cut For Michiganders Who Trade In Vehicles
Starting next month, Michigan car, boat, and RV buyers will get a tax break if they trade in old vehicles.
Governor Rick Snyder signed the measure into law Wednesday.
We have more from The Michigan Public Radio Network’s Jake Neher.
The bill gives people a break on sales tax for a new car purchase based on the value of the vehicle they’re trading in. Right now, you have to pay sales tax on the full price of the vehicle you’re buying. That’s regardless of whether you’re trading in an old one.
Governor Snyder says it will be a big boost for consumers.
“This will amount to nearly $300 million of tax savings when it’s fully implemented for Michigan taxpayers,” he says. “That’s a huge opportunity.”
The measure will be phased in over a number of years. On December 1st, car buyers will be able to save up to $120 in sales tax.