MI SB0127

Allows trade-in credits for motor vehicles and titled watercraft sales, but limits the agreed-upon value of the trade-in that can be excluded from the sales price through a phased approach from 2012 to 2018.

For motor vehicle trade-ins after June 30, 2012, establishes caps on the excluded trade-in value: $2,500 (2012), $5,000 (2013), $7,500 (2014), $10,000 (2015), $12,500 (2016), $15,000 (2017), with no limitation from 2018 onward.

Requires the agreed-upon trade-in value to be separately stated on the invoice, bill of sale, or similar document provided to the purchaser for the exclusion to apply.

Applies the same phased trade-in exclusion approach to titled watercraft sales beginning after June 30, 2012.

Maintains existing sales tax exemptions for financing charges, delivery and installation charges, and third-party price reductions when properly documented.