Tax break for Michigan recreation vehicle buyers
Starting in 2014, Michigan recreation vehicle (RV) buyers will see a tax break when trading in an older vehicle to purchase a new recreation vehicle from a licensed Michigan RV dealer.
The House and Senate passed a bill on Tuesday, November 4, 2013 that would end the charging of sales tax on trade-in recreation vehicles. The “Sales Tax on the Difference” bill will provide a customer who buys an RV beginning December 15, 2013, as much as a $120 savings with a trade-in.
Dave Rochette, owner of Westland Camping Center commented, “It’s a big step as virtually anything that gets traded in is going to benefit our customers. We’ve already had a couple customers that have heard about it, and it’s great that people are thinking about it.”
For the first year of the bill, the first $2,000 of a recreation vehicle’s trade-in value would be considered, providing $120 in savings. Over 25 years (roughly) the trade-in amount considered for tax exemption will grow by $500 each year. This will provide an extra $30 per year in savings, until reaching $14,000, at which the cap would be reached and no longer grow.