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Mackinac Center for Public Policy
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2012 House Bill 5696: Revise fuel price posting rules (originally “sales tax on the difference”)
  1. Introduced by Rep. Andrea LaFontaine (R) on May 29, 2012, to exempt from sales tax the value of a trade-in when buying a new motor vehicle or titled watercraft. The buyer would only pay sales tax on the difference between the value of the trade-in and the purchase price of the new car. The tax break would be phased in steps through 2015.
    • Referred to the House Tax Policy Committee on May 29, 2012.
      • Reported in the House on June 6, 2012, without amendment and with the recommendation that the bill pass.
    • Amendment offered by Rep. John Walsh (R) on September 27, 2012, to extend the bill to recreational vehicles. The amendment passed by voice vote in the House on September 27, 2012.
    • Amendment offered by Rep. Robert Genetski (R) on September 27, 2012, to extend the tax break to a person who sells a used vehicle to one dealer and buys a new one from another dealer within 60 days. The amendment failed by voice vote in the House on September 27, 2012.
  2. Passed 106 to 2 in the House on September 27, 2012.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on September 27, 2012.
    • Referred to the Senate Finance Committee on September 27, 2012.
      • Reported in the Senate on November 29, 2012, with the recommendation that the substitute (S-2) be adopted and that the bill then pass.
    • Substitute offered in the Senate on December 12, 2012, to strip out the "sales tax on the difference" provisions and make this a "vehicle" bill for new gas station price posting regulations. The substitute passed by voice vote in the Senate on December 12, 2012.
  4. Passed 37 to 1 in the Senate on December 12, 2012, to require prices posted on gas station fuel pumps and roadside advertising to be the full price rather than a "cash discount" or other conditional price. If there are any conditions these would have to be posted in lettering at least half the size of the posted price. The "sales tax on the difference" provisions were removed to make this a "vehicle" bill for these new regulations.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on December 12, 2012.

Comments

Re: 2012 House Bill 5696 (Vehicle trade-in “sales tax on the difference” only )  by zebeme on December 15, 2012 

 Does this have an any effect when you lease a new vehicle and trade in your vehicle?



2012 House Bill 5696 (Vehicle trade-in “sales tax on the difference” only )  by admin on November 22, 2012 
Introduced in the House on May 29, 2012, to exempt from sales tax the value of a trade-in when buying a new motor vehicle or titled watercraft. The buyer would only pay sales tax on the difference between the value of the trade-in and the purchase price of the new car. The tax break would be phased in steps through 2015

The vote was 106 in favor, 2 opposed and 2 not voting

(House Roll Call 561 at House Journal 0)

Click here to view bill details.

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