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Sales-tax relief

State Rep. Matt Lori on Tuesday voted for legislation that offers sales-tax relief for Michigan residents who buy new and used vehicles and watercraft.

The House and Senate approved bills that eliminate buyers having to pay sales tax on the full price of a car, watercraft or recreational vehicle purchase without subtracting the value of trade-ins.

Michigan is one of six states that charge sales tax on the full purchase price of cars or boats, which Lori said amounts to being double taxed on the value of the trade-in.

Residents who trade in a vehicle or watercraft when purchasing a new or used one will realize savings because the sales tax would be levied on the actual amount residents pay out of pocket, not on the newer item’s sticker price. As it stands now, people are required to pay sales tax on the cost of a vehicle or boat even if a trade-in lowers their actual out-of-pocket cost.