MI HB5696

Amends Michigan's General Sales Tax Act to add definitions for "new motor vehicle," "recreational vehicle," and related trade-in provisions.

Beginning January 1, 2013, allows exclusion of agreed-upon value of titled watercraft used as trade-in payment for purchase of new or used watercraft, if separately stated on invoice.

Beginning May 1, 2013, phases in exclusion of agreed-upon value of motor vehicles and recreational vehicles used as trade-in payment, starting at 10% in 2013 and increasing 10% annually until 100% exclusion in 2022 and thereafter.

Clarifies that sales price excludes separately itemized charges for gratuities/tips, maintenance and repair labor, delivery charges before ownership transfer, and installation charges before ownership transfer.

Specifies conditions for excluding third-party consideration from sales price, including requirements that purchaser present coupon/documentation, seller has obligation to pass discount to purchaser, and amount is fixed and determinable at time of sale.