The Michigan Senate will consider legislation to eliminate sales and use taxes from automotive manufacturer rebates, which could save new car buyers in the state an estimated $31 million annually.
House Bills 4939 and 4940 passed the Michigan House earlier this week. The bipartisan bills were sponsored by Reps. John Damoose, R-Harbor Springs, and Joe Tate, D-Detroit. The bills aim to take new vehicle customers off the hook for paying taxes on automotive manufacturer discounts.
Currently, Michigan car buyers incur a tax obligation for the full price of the vehicle they purchase, and no deductions are allowed for rebates offered by manufacturers. The bills under consideration would exempt rebates from state sales and use taxes.
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