Governor Rick Snyder and Michigan law makers struck a deal which includes tax breaks for Michigan car buyers. When Michigan residents buy a new car with a trade-in they will not have to pay sales tax on the full price of the car. They will only pay the sales tax on the car after the value of the trade-in has been subtracted from the selling price.
Michigan’s Senate Majority Leader Randy Richardville said “I’m excited because we’re giving something back to the average consumer. We’re telling people that financially we’re in good shape and we’re going to share the wealth so to speak a little bit with the people who put the tax money here is Lansing to begin with.”
Previously, Michigan was one of six states who made car buyers pay taxes on the full price of the car without subtracting the value of the trade-in. On October 22nd, the Senate voted 38-0 to change up the previous law.
Being a car dealership in Michigan, we are happy to see that the state government is helping out the residents. If you are in the market for a new vehicle, please stop by and see us in Albion! Visit our website to value your trade-in.