Proos Praises Vehicle Purchase Tax Break

State Senator John Proos is among the Michigan lawmakers who voted this week to override a veto from Governor Rick Snyder to a tax cut lawmakers have approved. Proos tells us this cut makes it less expensive to buy a car in Michigan.

“We compete every day against Indiana because of our border,” Proos said. “We compete every day on all things that happen in commerce. We know that selling and purchasing used vehicles is a part of our commercial activity, and one that should be benefiting the residents of Michigan, not becoming a windfall for the state.”

Under the reform approved this week, Michigan sales and use taxes will only be applied to the difference between the price of a new car and the value of a trade-in. Under the old scenario, vehicle buyers are taxed for the entire value of the newer car. The governor complained this week that state lawmakers just made budgeting more difficult for future state leaders. Proos tells us lawmakers will just have to budget more carefully.