Brandenburg on board with changes to tax code
LANSING–Legislation that would boost industry while lessening the tax burden on Michigan residents was approved by the Senate Finance Committee, said chairman state Sen. Jack Brandenburg.
“This is a tax break that everyone stands to benefit from,” said Brandenburg, R-Harrison Township. “It will serve as a shot in the arm for two of our state’s major industries while lessening the tax burden on residents.”
Senate Bills 89 and 90 would amend the Sales and Use Tax Act to exclude taxation on trade-in values of used cars and boats when the trade-in value is being applied to a new or used car or boat. The package creates a ten-year phase-in for the program.
Starting June 1, 2013, only ten percent of the agreed upon value will be exempt; and this amount will increase by ten percent each year until 2022 when it reaches 100 percent. After that, the entire value of the trade-in may be exempt.
“Michigan is one of only six states and the only Great Lakes state that taxes trade-in values,” Brandenburg said. “This puts Michigan at a major competitive disadvantage. I want to make Michigan as competitive as possible.”
SBs 89 and 90 now advance to the full Senate for consideration.