LANSING, Mich. (AP) — Gov. Rick Snyder has vetoed bills that would have accelerated sales tax breaks on car trade-ins.
Snyder said Tuesday that the legislation conflicts with a compromise made with lawmakers in 2013. He says the bills would “create additional financial strain” for the state.
Under current law, a car owner trading in a vehicle for another pays sales tax on the difference between the two. But there are limits; this year, for example, it’s $3,500. The limit grows each year.
The House Fiscal Agency says legislation vetoed by Snyder would have cost the Treasury about $15 million by 2021 if it had become law.
The bills’ supporters say Michigan can afford greater tax breaks because the economy has improved.