LANSING, Mich. (AP) - People looking to trade in their car for a new one in Michigan will get a tax cut.
A law signed Wednesday by Gov. Rick Snyder at a Lansing car dealership takes effect Dec. 15.
In the first year, buyers can subtract up to $2,000 of the value of the trade-in vehicle from the purchase price for tax purposes. Michigan has a 6 percent sales tax.
The trade-in value for tax purposes rises $500 a year until the tax cut is fully phased in in roughly 25 years.
Boat buyers can take advantage of a lower tax bill starting Nov. 15. Boat buyers can immediately subtract the full value of their trade-in to pay less taxes.
The law is intended to bring Michigan in line with most states, including neighbors.