A recent amendment to the General Sales Tax Act excludes from sales tax the agreed-upon value of your trade-in when you buy a new or used vehicle.
Unfortunately, the total amount of the exclusion cannot exceed $2,000. This amount increases $500 per year, commencing January 1, 2015, until the maximum exclusion amount is $14,000. At that point, the amount of the trade-in exclusion will equal the agreed-upon value (as agreed upon between the customer and dealership). See Public Acts 159 and 160 of 2013.
Eric J. Scheske