2013 House Bill 4234

Senate Roll Call 438: Passed

To exempt from sales tax the value of a trade-in when buying a new motor vehicle or recreational vehicle. Senate Bill 89 would phase this tax break in over 24 years, and halt the phase-in if the federal health care law's Medicaid expansion (authorized by <a href="http://www.michiganvotes.org/2013-HB-395">House Bill 4714</a>) is rescinded. (Note: Legal experts are divided over whether the state would be allowed to rescind the "Obamacare" Medicaid expansion.) Under these two bills, the buyer would only pay sales tax on the difference between the value of the trade-in and the purchase price of the new car. Initially, the tax break would only apply to $2,000 of the price difference, and this would increase $500 per year. When fully implemented the tax break's value would reach $226 million (in 2013 dollars).

38 Yeas / 0 Nays
Republican (26 Yeas / 0 Nays)
Democrat (12 Yeas / 0 Nays)