Sales tax: collections; credit for trade-in vehicles; modify. Amends sec. 1 of 1933 PA 167 (MCL 205.51). TIE BAR WITH: SB 0998’26
Key claim: Senate Bill 997 would amend Michigan’s General Sales Tax Act to modify the sales-tax credit for trade-in vehicles and is tie-barred with SB 998.
Abstract
(SB0997 · 103rd Legislature) Sales tax: collections; credit for trade-in vehicles; modify. Amends sec. 1 of 1933 PA 167 (MCL 205.51). TIE BAR WITH: SB 0998’26 Sponsor: Sen. Jonathan Lindsey ® + 12 co-sponsors In committee: S Finance, Insurance, And Consumer Protection Latest action (2026-05-21): Referred To Committee On Finance, Insurance, And Consumer Protection
Why this matters
Michigan’s trade-in credit reduces the sales-tax base when a vehicle is traded in on a new purchase, directly affecting the out-of-pocket cost for car buyers and the sales-tax revenue collected by the state. Changes to how the credit is calculated shift dollars between consumers, dealers, and the state general fund, and the tie-bar to SB 998 signals the change is part of a linked package that must move together.