first_img18Feb Reps. Webber and Sheppard bills accelerate sales tax relief State Reps. Michael Webber and Jason Sheppard have introduced legislation that will accelerate the exemption on a vehicle’s trade-in value from state sales tax calculations on new and used car and boat purchases.House Bills 4149 and 4150 will shorten the phase in of the “sales tax on the difference law” to 10 years, in 2025. The current 2013 law sets full implementation for 2036.“This legislation is a commonsense move,” said Rep. Webber, R-Rochester Hills. “Charging sales tax only on the difference after a trade-in has so much potential to help spur stronger auto sales, so accelerating the policy would be beneficial both to Michigan consumers and Michigan’s auto industry.”Michigan previously taxed the full value on a vehicle purchase even if it was partially paid for with a trade-in. This resulted in Michigan residents potentially being double and tripled taxed on purchases, and consumers shopping in neighboring states where the trade-in value was deducted.“We need to keep Michigan competitive in all arenas,” said Rep. Sheppard, R-Temperance. “Eliminating unfair taxation on hard-working Michiganders and their families is a no-brainer, and this legislation brings tax savings to people sooner.”The bills now head to the House Committee on Tax Policy for consideration. Categories: Sheppard News,Webber Newslast_img

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