Tax Update: Michigan Governor Signs Legislation Allowing Michigan Residents to Qualify for a Trade-in Credit on Out-of-State Purchases

Michigan Governor Rick Snyder recently signed legislation (SB 232 & SB 233) that clarifies Michigan residents now qualify for the Michigan trade-in credit when purchasing a vehicle out-of-state, including in Ohio. Previous Michigan law passed in 2013 only allowed Michigan residents to qualify for the credit if they purchased a vehicle from a Michigan dealer. While it took longer than we would have liked, OADA is very appreciative to the Michigan Legislature, General Motors, Attorney General Mike DeWine's office and our counterparts in Michigan, all of whom we worked with to clarify the law.

The new law is effective immediately and applies to new and used purchases by Michigan residents, Please see the Directive from the Ohio Department of Taxation (just released) on how to calculate tax on purchases from out-of-state residents, including Michigan residents.

Dealers may contact Joe Cannon at OADA at jcannon@oada.com with any questions.