New Michigan Auto-Legislation Accelerates Tax Savings
With spring here many of us may be thinking about turning in that old car for something new.
Before you hand those keys over, new Michigan legislation is on the table that may make that auto-transition a bit smoother.
By Michigan law you can trade in your old car to buy a new one and receive a tax break.
Serra Sales Representative, Kevin Earl explains, “It started in 2013 and so it started with a $2,000 tax break on a new vehicle, it’s gone up by $500 each year, so it’s currently at $3,500.”
Now that auto-legislation is switching gears, getting you out of that old car and into this new one that much quicker.
“They’ve increased it every year by a small amount so this new legislation is to help expedite that and increase it at a higher rate to save consumers more money on the taxes of their new vehicles at a quicker rate,” says Earl.
Instead of the tax break going up by $500 tax credit a year, it’s now going up by $1,000 doubling the speed of the tax break.
Bill supporters say they accelerated the bills process due to an increase in car sales and by the looks of it car buyers aren’t complaining.
“It sounds like a good idea. I mean if you’re taking one car you’ve already paid taxes on, trading it in on a vehicle you’re gonna repay another set of taxes on, getting a tax break is always a good thing cause on the end, on the consumer side you’re gonna be saving money,” says car buyer, Byron Knepp.
There are concerns as to how the tax cuts would affect state budget, but as far as auto buyers are concerned, the potential law is definitely something worth mentioning.
“I’m always about lower taxes whenever I can,” remarks Knepp.
“Always taking advantage of something to save money is always something worth passing on to let people know about.”
Governor Rick Snyder declined to give his stance on the legislation, but says he will watch and review the final version before making a decision.