LANSING (WKZO) -- Michigan Governor Rick Snyder has signed a bill that will save residents money when they purchase a new car or boat. Currently in Michigan, buyers are required to pay the sales tax on the full amount of the vehicle or boat they purchase even if the actual sales price is lower due to a trade-in or down payment.
The measure begins by exempting the first two-thousand dollars of a vehicle's trade-in value starting December 15th. That exemption will increase by 500-dollars each until the dollar amount reaches 14-thousand dollars. The cap will be eliminated completely at that point.
Snyder praised lawmakers for bipartisan support of the bill.