Effective Dec.15 2013, Public Acts 159 and 160 provide purchasers with partial sales tax credit for vehicles traded in to dealers. Michigan joins 40 states providing similar trade-in sales tax credit. The sales tax credit will be applied to purchases of new or used motor vehicles or new or used trailer coaches. The new act phases in sales tax trade-in credit over the next several years.
The maximum sales tax trade-in credit begins at $2,000 and is effective through calendar year 2014. The partial sales tax trade-in credit increases by $500 annually. Beginning Dec. 15, 2013 through Dec. 31 2014, owners trading in motor vehicles or trailer coach receive a sales tax credit for the vehicle’s trade-in value up to a maximum of $2000.