Attention Michigan Dealers: New Sales Tax Credit on Vehicle Trades up to $2000

By Amir Dabiri - January 20, 2014

Effective December 15, 2013, up to $2,000 of trade allowance is exempt from sales tax.  This will provide a sales tax reduction up to $120 for purchasers in 2014. The exemption limit will increase by an additional $500 each year, beginning January 1, 2015.   The trade-in must be used as a reduction of the purchase price of a new or used motor vehicle, and that value is to be separately stated on the bill of sale provided to the purchaser. This also brings a change of disclosure on the RD-108 form and a new RD-108T form is provided.  Please contact Deal Pack support at 1-800-526-5832 if you have any questions and to ensure your set up is in compliance for this new rule.

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