Sales tax: exemptions; offset of the trade in value of personal electronics; provide for. Amends sec. 1 of 1933 PA 167 (MCL 205.51).
Key claim: Michigan SB0981 would amend the General Sales Tax Act so the taxable sales price of personal electronics is reduced by the value of a trade-in.
Abstract
(SB0981 · 103rd Legislature) Sales tax: exemptions; offset of the trade in value of personal electronics; provide for. Amends sec. 1 of 1933 PA 167 (MCL 205.51). Sponsor: Sen. Kevin Hertel (D) In committee: S Finance, Insurance, And Consumer Protection Latest action (2026-05-19): Referred To Committee On Finance, Insurance, And Consumer Protection
Why this matters
For consumers, SB0981 would lower the sales tax owed when trading in personal electronics toward a new purchase, reducing the taxable base by the trade-in value. For retailers, it aligns electronics sales with the trade-in accounting already used for motor vehicles. For the state treasury, it narrows the sales-tax base — a modest but ongoing revenue reduction whose magnitude depends on electronics trade-in volume.