2007 House Bill 4514 (Vehicle trade-in “use tax on the difference” only )

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Introduced by Rep. Terry Brown (D) on March 22, 2007, to exempt from sales tax the value of a trade-in on the purchase of a new motor vehicle. The buyer would only pay sales tax on the difference between the value of the trade-in vehicle and the purchase price of the new vehicle. This bill is part of a package of tax increases and some tax cuts included in Gov. Jennifer Granholm’s Fiscal Year 2007-2008 budget recommendation, which is based on approximately $1 billion in tax increases. Under this legislative package some new car buyers with trade-ins would save approximately $180 million annually. See also House Bill 4373.
- Referred to the House Tax Policy Committee on March 22, 2007.
  - Reported in the House on April 5, 2007, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Most Recent Comments

1) I'll by tomorrow if this is voted in [by Anonymous Citizen on May 16, 2007]
I'm looking at purchasing a new vehicle right now via a trade-in of two vehicles. The one I'm interested in is about $1500 outside of my financial reach. If this bill was voted in, I could purchase that car tomorrow due to the tax savings. If the bill is not voted in, I'll have to sell my vehicles privately and then purchase a used vehicle privately. I realize the state won't get the $1500 from my deal with this bill, but the car manufacturer that is located in Detroit WILL get the sale of a new car. If I do everything privately, then both the state and the Detroit manufacturer loose out. Coming from another state where they did not tax on the trade-in difference, this was a HUGE incentive to purchase a new vehicle and EVERYONE knew about it.

Please enact this law. It is the right thing to do to help stimulate the automative sales in Michigan (that and allowing tinted windows, grin.)
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2) Then Cut The Budget [by Anonymous Citizen on May 2, 2007]
It's Not Your Money
It's Our Money and for you to take it and buy votes is wrong. Cutting taxes ANYWHERE is a good idea that will bring more revenue to the insatiable state government in the long run.
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3) Can't afford it [by Anonymous Citizen on May 2, 2007]
I this this is a good idea. It could help on the sale of cars. The only problem is; there is no way the budget can afford it at this time.
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