Speedier tax cut for car buyers OK’d by Michigan Senate

LANSING, Mich. (AP) — Michigan senators have voted to more quickly phase in a tax break for people who trade in their car for a new one.

A 2013 law lets buyers subtract some of the value of their trade-in from the purchase price of a new vehicle for tax purposes. The change is being phased in until 2039.

The Republican-controlled Senate unanimously approved legislation Wednesday to accelerate the phase-in of the tax cut 10 years sooner, by 2029.

Supporters say the law helped boost auto sales and buyers deserve a bigger tax break earlier. The nonpartisan Senate Fiscal Agency says Michigan could lose nearly $18 million in tax revenue in year two.

Michigan has a 6 percent sales tax.

The bill goes to the House.

——

Online:

Senate Bills 94-95