House Receives 'Sales Tax On The Difference' Legislation From Senate

Senate Bill 89 and Senate Bill 90 passed the Senate Wednesday and will now make their way to the House of Representatives for consideration. The measures passed on 36-2 and 36-0 votes, respectively. Senators Roger Kahn (R-Saginaw) and Coleman Young (D-Detroit) voted against the bills.

The two bills propose a 10-year phase out process that would exclude, from sales and use tax, the value of a trade-in on a new or used motor vehicle, watercraft, or recreational vehicle. 10 percent of the agreed upon value will be exempt from taxation with the exemption amount increasing by 10 percent each year for 10 years. Senator Dave Robertson (R-Grand Blanc) is the sponsor of the legislation.

The Senate amended the measures in two ways – first, by making the language applicable to automobiles implemented by “fiscal year” as to coincide with the budget and, secondly, by changing the effective date for watercraft to immediately as opposed to June 1, 2013 as introduced.

Revenue impact estimates are roughly $240 million over the 10 years.

posted by PAA Online , Friday, February 8, 2013 10:10 AM
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