Michigan RV Buyers Get Sales Tax Break

Michigan RV Buyers Get Sales Tax Break
The Michigan Association of Recreation Vehicles and Campgrounds (MARVAC) has advocated on behalf of Michigan RV buyers and RV dealers for a “sales tax on the difference” policy, which, after a rare move by the Michigan Legislature, went into effect on Jan. 18, 2018.

In June 2017, Senate Bills 94 and 95 were passed by the Senate which allowed for a person trading-in a used RV to purchase a new RV to be taxed only on the difference between the value on the trade-in and the new RV price. For example, if the trade-in value of an RV is $50,000 and a new 2018 RV is $100,000, the six percent sales tax will only be applied on the difference, or $50,000, Sheffer explained.

Michigan Gov. Rick Snyder vetoed the bills in July 2017, but the veto was overridden by the legislature. These bills mark the first time a Michigan governor’s veto has been overturned since 2002.

“This is a great deal for those who enjoy RVing but may have been holding off on purchasing a new RV,” said Sheffer. “In addition to being great news for RV buyers, RV dealers are thrilled because it gives them another sales tool.”

“These Public Acts 1 and 2 of 2018 are not only benefiting family-run businesses but the state economy as a whole,” William Sheffer, executive director of MARVAC said. “We are pleased the dedicated effort of MARVAC on behalf of RV enthusiasts across the state has come to such a beneficial outcome.”

With Michigan’s largest RV Show – the 52nd Annual Detroit Camper & RV Show at Suburban Collection Showplace in Novi – running Feb. 7-11, RV buyers will have an opportunity to take advantage of the substantial new tax savings.

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