MI SB0126

Amends the definition of "purchase price" in Michigan's Use Tax Act to exclude the agreed-upon value of a motor vehicle or titled watercraft used as trade-in payment, if separately stated on the invoice or bill of sale.

Applies trade-in exclusion to both new and used motor vehicle purchases, with "new motor vehicle" defined by section 33a of the Michigan Vehicle Code.

Requires trade-in values for watercrafts to be separately identified on sales documents to qualify for the exclusion from taxable purchase price.

Modifies tax calculation to apply use tax only to the net difference between the purchase price and trade-in value, rather than the full purchase price for qualifying vehicle and watercraft transactions.