NO SALES TAX ON THE VALUE OF "TRADE-IN" MOTOR VEHICLE
House Bill 4068
Sponsor: Rep. Doug Spade
Committee: Tax Policy
Complete to 2-7-03
A SUMMARY OF HOUSE BILL 4068 AS INTRODUCED 1-28-03
The bill would amend the General Sales Tax Act to provide that in the case where a motor vehicle was used as part payment in a retail sale of another motor vehicle (that is, as a "trade-in"), the sales tax would be applied to the difference between the agreed-upon value of the motor vehicle being traded in and the full retail price of the motor vehicle being purchased.
MCL 205.51
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.