Sales Tax on the Difference - I Hope this one Passes!

Petep

Member
Oct 5, 2006
518
Grosse Pointe, MI
Boat Info
460 Sundancer
Engines
Cummins 480CE
Michigan Senate Passes SB 201, Sales Tax on the Difference
Michigan Senate Passes SB 201, Sales Tax on the Difference, on Thursday, March 12th

MBIA is pleased to inform members that SB 201 (Sub S2), primarily sponsored by Senator Sanborn (R-11), has passed the Michigan Senate on Thursday, March 12th, with thirty (30) yeas and seven (7) nays. SB 201 will provide STD (sales tax on the difference) for boat, car, RV, RV trailer, snowmobile and heavy equipment purchases. It has been sent to the Michigan House of Representatives and assigned to the House Committee on Tax Policy. Thanik you to all members who contacted their Senators to help make this happen.

“We are extremely pleased to have the Michigan Senate pass SB 201 and look forward to our industry’s efforts to convince members of the Michigan House of Representatives that passing this legislation is vital to the short and long-term economic health of our industry and vital to the economy of the state of Michigan,” stated Van Snider, MBIA President. “We will be calling on our entire membership shortly to contact their House members in an all-out push to communicate how important it is to supporting SB 201,” he continued.

MBIA’s lobbying firm, Muchmore Harrington Smalley and Associates, has indicated the effort to pass SB 201 in the House will be more challenging than in the Senate and, additionally, it is important that we garner Governor Granholm’s support. Passing STD has been a continued goal of the MBIA for a number of years, and this is as close as our industry has been to succeeding. It is vital that the entire membership do its part to insure House members understands why sales tax on the difference should be implemented to help our economy, encourage sales in Michigan and keep and create jobs.

The MBIA Board of Directors, staff and lobbyists look forward to working with members to pass this much needed legislation
 
We have this in Wisconsin now.

The intention is to help dealers, not sellers.

If you have one boat and want to buy another and all people are private individuals you will pay the same sales tax as before.

Add a single dealer and the ‘only tax the difference’ comes into play.

It sounds so good until you understand they are trying to hurt private ‘FSBO” business.

In my opinion, it should also apply to FSBO.

Say you sell a boat and within X days (30-90) buy another for the same or greater value, you should get the same benefit. This would help sellers and buyers, not push business to dealers.
 
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PeteP,

sounds interesting. If I'm reading this correctly, you would only pay the sales tax on the cost difference between your old boat (trade-in?) and your newly purchased boat (regardless of new/used?)?

Gregg
 
Yes, that's the way it should be! I had bought 3-Boats in 4 years...I wish I had some of that money back-right now! The governor should have sent me flowers.
 
If you trade down in price, will they send you a check for the sales tax on the difference? Silly me, we're talking gov't here....
 
Move to RI. No boat sales tax or property tax in the Ocean State.

There is boat registration fees, even on documented vessels, but it's not too bad.
 
Petep,

You're not trading in that beautiful 460DA with all the neat lights, are you? I know where there's a 550Da and 560DB with your name on them.
 
They are also including vehicle purchase. Next week I am going to order an GMC Arcida.
 

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