Use tax: collections; credit for trade-in vehicles; modify. Amends sec. 2 of 1937 PA 94 (MCL 205.92). TIE BAR WITH: SB 0997’26
Key claim: Michigan SB0998 would modify the use-tax credit allowed for trade-in vehicles under the Use Tax Act, and is tie-barred with SB0997.
Abstract
(SB0998 · 103rd Legislature) Use tax: collections; credit for trade-in vehicles; modify. Amends sec. 2 of 1937 PA 94 (MCL 205.92). TIE BAR WITH: SB 0997’26 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
The use-tax trade-in credit reduces the tax owed when a vehicle is traded in toward the purchase of another, directly affecting how much Michigan car buyers pay at the point of sale. Adjustments to the credit cap or formula shift costs between consumers and state revenue, and pairing it with a sales-tax counterpart (SB 0997) keeps the two tax regimes aligned.