HB 5425 Summary

• Amends the General Sales Tax Act to add a new subsection (xi) defining how trade-in allowances are treated when a used motor vehicle is traded toward the purchase of a new motor vehicle.

• Excludes the agreed-upon value of a trade-in motor vehicle from the sales price subject to sales tax if the value is separately stated on the invoice or bill of sale.

• Defines "new motor vehicle" by reference to section 33a of the Michigan Vehicle Code, MCL 257.33a.

• Modifies subsection (vi) to clarify that trade-in credits are excluded from sales price except as otherwise provided in the new subsection (xi) regarding motor vehicle trades.