Michigan Gov. Rick Snyder signed a law Wednesday that will give tax breaks to car, RV and boat buyers with trade-ins, a move celebrated by the Michigan Boating Industries Association.
Michigan will now follow the same policy as surrounding states, which allow consumers to pay sales tax only on the difference between the trade-in value and the new purchase price.
The association says the law, which goes into effect for boats Nov. 15, means Michigan will no longer be at a competitive disadvantage with neighboring states.
“This will have a huge impact on our ability to compete on a level playing field with our competitors in Ohio and Indiana. This should increase sales within our state, keeping that revenue inside the state of Michigan. Great to see our lawmakers doing the right thing and making the tax more fair to consumers.” Coldwater Lake Marina president Les VanStone said in a statement.
The new law exempts the full value of a trade-in from the sales and use taxes on all boats starting Nov. 15. Automobiles will have a phase-out process that starts Dec. 15.