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View Full Version : Status of sales tax law on trade-ins



Kosher
12-17-2014, 07:54 AM
I wasnt aware they passed it last year.

You can now take up to $2K of the trade in value to reduce the purchase price of the new vehicle for the purpose of calculating sales tax when you trade in a bike or car.

Its a start.

It goes up by $500/year starting Jan 1 2015, until it reaches $14K, when it becomes uncapped.

So basically in 24 years you'll be able to deduct the total amount of the trade in for calculating sales tax.

http://www.taxrates.com/blog/2013/11/08/michigan-new-exemption-for-trade-in-vehicles/

Gas Man
12-17-2014, 07:29 PM
Why scale it?? That seems ridiculous!!

Kosher
12-17-2014, 10:57 PM
Why scale it?? That seems ridiculous!!


To make the reduction in revenue gradual

bombdog
12-18-2014, 07:59 AM
They will just raise taxes other places.