Michigan residents who trade in their vehicle for anew one will get a tax break under a deal struck between lawmakers and Gov. Rick Snyder.
The Senate on Tuesday voted unanimously to phase out a requirement that buyers pay sales tax on the full price of a car or RV without subtracting the value of their trade-in. The House is expected to vote later in the day.
Starting in December, buyers would no longer pay the 6 percent sales tax on $2,000 or the value of their trade-in, whichever is less. Each year after, the value of the trade-in that would lower the tax bill would rise $500.
Michigan is among just six states to make car buyers pay sales tax on the full price without subtracting their trade-in.
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