Bill > SB0997

This bill modifies the definition of "sales price" within Michigan's General Sales Tax Act, which is the law governing sales tax collections. Specifically, it adjusts how trade-in vehicles are treated when calculating the sales tax owed on a new or used vehicle purchase from a dealer. The bill removes previous limitations on the agreed-upon value of a trade-in motor vehicle or recreational vehicle that could be credited against the purchase price, effectively allowing the full agreed-upon value of a trade-in to reduce the taxable amount of the new purchase, regardless of its value, for sales made on or after the effective date of the amendatory act. Additionally, it clarifies that delivery and installation charges are excluded from the taxable sales price if they are separately stated on the invoice and the seller maintains proper records, and it also cancels certain outstanding tax balances related to these charges that were assessed before April 26, 2023. This legislation is tied to another bill, Senate Bill 998 of the 103rd Legislature, meaning it will only become law if that bill is also enacted.