LANSING, Mich. — State Sen. Jonathan Lindsey recently introduced legislation that would make it more affordable for people to get a new vehicle.
Michigan is one of only a few states that does not allow for the full value of a trade-in to be applied against sales tax. The state currently has a $12,000 maximum cap.
“This arbitrary limitation hurts both consumers and dealerships and serves no purpose beyond gaming Michiganders out of their hard-earned money,” said Lindsey, R-Coldwater. “A safe, reliable automobile is essential for most families, and current law gets in the way of obtaining a new vehicle.”
Senate Bills 997 and 998 would allow for the total value of a trade-in automobile to be applied against sales tax on the corresponding vehicle purchase.
“When the government gets out of the way and out of taxpayers’ pockets, growth and economic activity tend to thrive,” Lindsey said. “This legislation pairs with several other reforms I am working on to provide meaningful tax breaks and keep money in the pockets of all Michiganders.”
SBs 997 and 998 have been referred to the Senate Committee on Finance, Insurance, and Consumer Protection.
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