2018/01/17 – News from State Rep. Gary Howell’s office

Howell: Veto override helps Michigan auto industry, vehicle buyers

Legislation accelerates sales tax trade-in reforms

2018/01/17:  State Rep. Gary Howell has voted to accelerate sales tax relief for Michigan car buyers, joining his House colleagues in overriding a gubernatorial veto.

The House vote means additional tax relief for people buying cars, trucks and SUVs with a trade-in. Current law calls for phasing in planned sales and use tax deductions on purchases including a trade-in through 2039. With today’s vote, the reductions will be fully implemented a decade earlier.

“Michigan’s auto industry leads the nation. It’s critical to our economy,” said Howell, of North Branch, after the House joined the Senate in overriding a veto by Gov. Rick Snyder. “We must do all we can to keep the auto industry strong, and this measure will help boost sales in Michigan.”

The Senate bills overwhelmingly approved by the Legislature were vetoed by the governor in July.

“There are times when I have to disagree with a governor from my own party, and this is one of those times,” Howell said.

The new law speeds reforms approved in 2013, allowing buyers to subtract the value of their trade-ins from the purchase price of a vehicle for sales tax purposes. The accelerated sales tax relief also will apply to boats and recreational vehicles bought with a trade-in.