Michigan Senate votes to cut sales tax on vehicle sales

Michigan State Capitol

The Michigan Senate has voted to cut the sales tax on vehicles, whether purchased new or used.

Michigan is one of just 6 states that don't allow a trade-in allowance against the sales tax applied to sales of cars, boats and recreational vehicles.

The bill, overwhemingly approved in the Senate, would change this.

The measure, which would be phased in over 10 years, would apply the trade-in value of a car to the calculation of the 6 percent sales tax when a new vehicle is bought.

Now the bill is sent on to the MIchigan House for consideration.