Michigan House votes to cut tax for vehicle sales
Michigan House votes to cut tax on car, boat sales by calculating value of trade-ins
LANSING, Mich. (AP) -- The Michigan House has voted to cut taxes people pay when they trade in a car and buy a new one.
Michigan is among just six states to make car buyers pay sales tax on the full price of a vehicle without subtracting the value of their trade-in. That would change under legislation approved 100-7 on Thursday.
The Senate overwhelmingly passed similar legislation earlier this year. But Republican Gov. Rick Snyder is opposed because of concerns about lost tax revenue.
It's unknown if lawmakers will send him legislation anyway or if the issue will stall like it did in 2012.
A trade-in allowance would be phased in over five years for the purchase of cars. Those buying boats and RVs would get the allowance right away if it becomes law.
