2007 House Bill 4373 (Vehicle trade-in “sales tax on the difference” only )

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Introduced by Rep. Marc Corriveau (D) on March 1, 2007, to exempt from sales tax the value of a trade-in on the purchase of a new motor vehicle. The buyer would only pay sales tax on the difference between the value of the trade-in vehicle and the purchase price of the new vehicle. This bill is part of a package of tax increases and some tax cuts included in Gov. Jennifer Granholm’s Fiscal Year 2007-2008 budget recommendation, which is based on approximately $1 billion in tax increases. Under this bill new car buyers with trade-ins would save approximately $180 million annually.
- Referred to the House Tax Policy Committee on March 1, 2007.
  - Reported in the House on April 5, 2007, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.

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1) you are [by Anonymous Citizen on March 2, 2007]
JUST NOW figuring that out???
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2) Democrats Kick Used-car Buyers in the Lug Nuts [by Anonymous Citizen on March 2, 2007]
This bill (and the equivalent Senate Bill 318) grant the long-needed exemption from sales tax for the amount of a new-car purchase paid for with a trade-in. This means that Michigan new-car buyers won't have to pay sales tax twice on the value of their used car: once when they bought it, and again when they trade it for a new car.

But unlike House Bill 4230 (Rep. Pearce), this bill only applies to the value of cars traded in for NEW cars. Michigan drivers trading one used car for another slightly-less-used car won't get the sales tax exemption. This bill only benefits car buyers wealthy enough to afford a brand-new car. Your $2,000 beater would be worth $120 more as a trade-in for a new $20,000 car, but not if you can only afford to trade up to a $6,000 used car.

This bill is just another sign that the Democratic Party is no friend of Michigan's working poor. And they don't care much for independent small businesses either, like used-car lots.

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3) 2007 House Bill 4373 (Vehicle trade-in “sales tax on the difference” only ) [by admin on January 1, 2001]
Introduced in the House on March 1, 2007

Click here to view bill details.
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