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Sales Tax on the Difference Legislation Vetoed

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Last week, Michigan Gov. Rick Snyder made the decision not to sign Senate Bills 0094 and 0095 that would have given RV dealers the ability to offer RV buyers the full value of their trade-in against the purchase price of a new or used RV.

The legislation included language that would have moved the timeline up on phasing in the sales and use tax break for auto-trade ins. The governor called the bills “not fiscally prudent.” He cited budget pressures from several areas in coming years, in particular dedication of funds to road funding.

The original legislation was passed in 2013.

“We believe there are more factors to be considered when factoring in the sales tax on the difference for recreation vehicles. RV buyers are crossing state lines and looking to spend their RV dollars in states that offer them tax on the difference for their trade-ins,” said Dave Haylett, Coldwater RV dealer and MARVAC member.

“The other factor in this case is the Michigan boating industry was given full benefit in 2013 of allowing for the full amount of the trade-in value against the sale price of a new or used boat,” continued Haylett. “RV dealers are in the recreation business as are boat dealers, but we are not being given the same opportunity to participate on a level playing field … The association put a lot of time and effort back in 2012 to pass the original legislation and again this year to accomplish what nearly 40 other states already have in some variation of sales tax on the difference for their RV customers.”

The MARVAC board of directors will meet again on Sept. 12 and further discussion of this legislative issue will continue.

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