Residents who trade in used vehicle may get a tax break - ABC 12 – WJRT – Flint, MI

Residents who trade in used vehicle may get a tax break

Posted:
FLINT (WJRT) -

(10/22/13) - Michigan residents who trade in a used vehicle for a new one might be in line for a tax break.

That's after a deal was reached between lawmakers and the governor Tuesday in Lansing.

The State House and Senate voted Tuesday to phase out a requirement that charges sales tax on the full price of a car, RV or boat without subtracting the value of a trade-in.

The bill is expected to get final approval on Wednesday.

It started out with plenty of support from members of both parties, but Gov. Snyder's office had expressed concerns that the lost tax revenue could affect the state's ability to meet fiscal obligations.

A spokesperson for the House Speakers office says starting in December, buyers won't pay six percent sales tax on$2,000 or on the value of a trade-in, whichever amount is less.

Larger tax breaks will be phased in over the next several years.

A Mid-Michigan dealership thinks this will help the state's economy in the long run.

"I think people would look at it as their bottom line, their payment, they might think about considering moving up to a brand new vehicle if the prices are great, and they might say let's get rid of our used vehicle and go into a new one. It's going to help the bottom line any way you look at it, wether you look at $100 or $200 in savings, that affects their payment in the end," said Jeannine Ferguson, a sales manager with Applegate Chevrolet.

This bill still has to go to Gov. Snyder's office. He's expected to sign it.

  • Local NewsMore>>

  • Lapeer couple charged with murder in deadly dog attack

    Lapeer couple charged with murder in deadly dog attack

    Friday, August 1 2014 6:22 PM EDT2014-08-01 22:22:10 GMT
    The owners of the dogs who attacked and killed a man last week have been charged with second degree murder.
    The owners of the dogs who attacked and killed a man last week have been charged with second degree murder.
  • Two Flint residents face charges tied to deadly police chase

    Two Flint residents face charges tied to deadly police chase

    Two Flint residents face charges tied to deadly police chase

    Friday, August 1 2014 11:21 PM EDT2014-08-02 03:21:43 GMT
    (08/01/14) - Two Flint residents are behind bars tonight facing charges related to a police chase and fatal crash.Genesee County Prosecutor David Leyton has filed criminal charges against Curtis Lee II and Jasmin Dent.They are facing a number of charges tied to police chase and crash that killed one woman.The incident happened around 4:30 July 3rd. According to the Genesee County prosecutor's officer, A state troopers tried to pull over a car driven by Curtis Lee II for a traffic violation o...
    (08/01/14) - Two Flint residents are behind bars tonight facing charges related to a police chase and fatal crash.Genesee County Prosecutor David Leyton has filed criminal charges against Curtis Lee II and Jasmin Dent.They are facing a number of charges tied to police chase and crash that killed one woman.The incident happened around 4:30 July 3rd. According to the Genesee County prosecutor's officer, A state troopers tried to pull over a car driven by Curtis Lee II for a traffic violation o...
  • Concerns grow in Richfield Township where company looks to buy landfill

    Concerns grow in Richfield Township where company looks to buy landfill

    Friday, August 1 2014 6:41 PM EDT2014-08-01 22:41:42 GMT
    TerRenova LLC wants to mine the land for recyclables at the landfill located near Holoway Reservoir.
    TerRenova LLC wants to mine the land for recyclables at the landfill located near Holoway Reservoir.
Powered by WorldNow

abc12.com

ABC12 Main Station
810-233-3130

Mailing Address:
2302 Lapeer Road
Flint, Michigan 48503

Powered by 

WorldNow
All content © Copyright 2000 - 2014 WorldNow and WJRT. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.