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Governor Signs New Vehicle Tax Breaks Into Law

Buying a new vehicle just got a little cheaper, if you have something to trade-in. On Wednesday, Governor Rick Snyder chose a Lansing car dealership to sign a new tax break into law.

Governor Signs New Vehicle Tax Breaks Into Law

By FOX 47 News . CREATED Nov 6, 2013

Buying a new vehicle just got a little cheaper, if you have something to trade-in. On Wednesday, Governor Rick Snyder chose a Lansing car dealership to sign a new tax break into law.

Surrounded by lawmakers, consumers, and auto dealers, Snyder sat in the showroom of Shaheen Chevrolet to sign Public Acts 159 & 160. The laws give buyers of cars, boats and recreational vehicles a $2,000 dollar exemption on their trade-in. It means a $120 savings on the cost of buying a new vehicle.

Governor Snyder says it’s just the beginning. "This is something that we're going to be phasing in over time. We're doing this in a very financially responsible way." People who buy vehicles will get the tax break, and the state will have time to budget for the loss in revenue. Each year, the exemption will grow by $500 until it hits $14,000. That means about $800 dollars for buyers down the road.

Owner of Shaheen Chevrolet, Ralph Shaheen, says customers are already asking about the deal. "As this bill progresses and the allowance gets larger, you have to understand, for every 1,000 dollars, that's 20 dollars in payment. For a lot of people, that's huge money, so hopefully and it think it will, sell us more vehicles."

The Governor and lawmakers says the tax break will help boost the economy. Senator Majority Leader Randy Richardville said, “Its a step in the right direction. We're not saying that its all encompassing and going to change somebody's life, but it's nice to get $120 back when you're buying a car."

For Todd Harter, it’s incentive to choose a new vehicle. He’s looking for a new SUV. "Its more money than what it was yesterday, so any savings that we can have we'll take advantage of it."

The new law takes effect December 15th. But you don't have to wait to get a deal. Some dealerships are already offering $120 rebates.