HB 4253 Summary

• Amends the Use Tax Act (1937 PA 94) to modify the definition of "purchase price" for use tax purposes, effective January 1, 2017.

• Establishes a graduated increase in the trade-in credit limit for motor vehicles and recreational vehicles: $2,000 through December 31, 2017; $4,000 for 2018; $5,000 beginning January 1, 2019, then increasing by $1,000 annually starting January 1, 2020 until reaching $14,000.

• Adds a new exclusion from purchase price for core charges attributable to recycling fees, deposits, or disposal fees for motor vehicle or recreational vehicle parts or batteries if separately itemized on invoices.

• Clarifies that third-party price reductions and discounts meeting specified conditions are excluded from the tax base, including coupons, group memberships, and properly documented discounts.

• Expands the definition of tangible personal property and consumer to include various transaction types, including construction-related purchases and conversion of exempt-use property to taxable use.