Bill to quicken tax cut for cars buyers up for Senate vote

Posted at 6:43 AM, Mar 29, 2017

LANSING, Mich. (AP) — Michigan senators are poised to vote 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 plans to approve legislation Wednesday that would accelerate the phased-in tax cut 10 years sooner, in 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 $8 million in the first year and nearly $18 million in the second year.

Michigan has a 6 percent sales tax.