Local Lawmakers Support Override Of Governor's Veto On Sales Tax Relief Bill
January 19, 2018
Local lawmakers are supporting a bill that will accelerate sales tax relief for Michigan families buying a motor vehicle.
Reforms adopted in 2013 called for reductions on sales tax for individuals purchasing a motor vehicle, recreational vehicle, or boat with a trade-in. The exemptions were set to be phased in through 2039 and once fully in place, buyers would pay 6% sales tax on the difference between the price of their new vehicle and the value of their trade-in.
A pair of bills was introduced to speed up the phase-in of the exemption, implementing the “sales tax on the difference” a decade earlier. The legislation last year passed unanimously in the Senate and 89 to 11 in the House, but was vetoed in July by Governor Rick Snyder, who felt it would place a burden on the state’s budget. Lawmakers still felt Michigan residents would benefit from the sales tax relief, which led to a vote Wednesday to override the gubernatorial veto. More than a two-thirds vote is needed for an override and after a unanimous vote in the Senate, the House came through, voting 85 to 23.
State Representative Hank Vaupel of Handy Township and State Representative Lana Theis of Brighton Township were among lawmakers in support of the override. Vaupel says the bill allows residents to purchase a vehicle without having to worry about another cost. Theis says the tax relief on trade-ins provides incentive to purchase new vehicles, which will further support the state’s most vital industry.
Snyder isn’t wavering from his original stance. He responded to the override to say, "Changing the tax code without a plan to pay for it challenges the conservative fiscal responsibility of the past seven years.” The override is only the fourth in 67 years performed by Michigan’s legislature. (DK)