Michigan Governor Rick Snyder signed a bill
into law Wednesday that would decrease the sales tax on the value of a trade-in
when a purchase is made.
The first $2,000 of a trade-in will be exempt
and that number will continually rise by $500 per year until it reaches its cap
level of $14,000. The phase-in applies to automobiles and recreational vehicles
(RVs); however, watercraft will receive the full benefit immediately.
Bills passed through the House and Senate in
the 2011-12 term until Governor Snyder’s concerns over revenue impact stalled
the bills. Mr. Snyder agrees more with the new phase-in period of 24 years as
opposed to 10 years and said that the economy’s revenue improvements and state
savings from Medicaid expansion and reform would help to limit the damage from
the revenue loss.