LANSING, Mich. — The Michigan Senate on Wednesday voted to override the governor’s veto of Senate Bills 94 and 95 to speed up “sales tax on the difference” reform.
Under the reform, Michigan sales and use taxes would only be applied to the difference between the price of a new car and the value of a trade-in.
After supporting the veto override, Sen. Mike Shirkey, R-Clarklake, issued the following statement:
“Michigan is one of only six states — and the only Great Lakes state — to still tax the value of trade-ins. This is an unfair tax policy that penalizes Michigan families and puts businesses in the state at a competitive disadvantage.
“To override the governor’s veto is serious, and my colleagues and I don’t take this action lightly. But even more concerning is this current tax policy, and we needed to act decisively to eliminate it.
“This initiative, which had bipartisan support, will be a financial boost both to Michigan consumers and to businesses.”