Introduced
by
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 Committee on Tax Policy
Reported without amendment
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
