Keweenaw Report Your Source for Local News and Sports
Lawmakers in Lansing are considering a measure to speed up an effort to give you a better deal when you trade in a car.
Current law phases out the sales tax you pay on the difference between the purchase price of a car and what the buyer actually pays after deducting the trade in value. But it doesn’t phase out fully for 23 years.
Under a new bill in Lansing, it would phase out in 10 years.
Current law allows for a $2,500 exemption, which increases by $500 per year until 2039. The bill speeds up and increases the exemptions until the tax is gone by 2025.
The bill is now before the Michigan Senate.
