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New car buyers may get tax break in Michigan

LANSING (WKZO) -- New car buyers may get a tax break when they trade in their old vehicle.

Legislators in Lansing are considering a law that would forgive the tax on the value of the trade in. Current law requires buyers to pay the six percent sales tax on the full amount of a new car, boat or RV purchase even when an old vehicle is traded in.

If this law is passed, the value of the trade-in would be deducted from the sale amount and the purchaser would pay tax on the difference.