Since 2013, the Michigan Association of Recreation Vehicles and Campgrounds (MARVAC) has been advocating on behalf of Michigan RV consumers and RV dealers for a “sales tax on the difference” policy, which, after a rare move by the Michigan Legislature, went into effect on January 18.
“Educating and working with the politicians in Lansing and around the state was a major directive for MARVAC for the last five years,” said William Sheffer, executive director of MARVAC, in a press release.
In June 2017, Senate Bills 94 and 95 were passed by the senate, which allowed for a person trading-in a used RV to purchase a new RV to be taxed only on the difference between the value on the trade-in and the new RV price.
For example, if the trade-in value of an RV is $50,000 and a new 2018 RV is $100,000, the 6% sales tax will only be applied on the difference, or $50,000, Sheffer explained.
Governor Rick Snyder vetoed the bills in July 2017, but in an unusual move by the legislature, the veto was overridden. These bills mark the first time a Michigan governor’s veto has been overturned since 2002.
“This is a great deal for those who enjoy RVing but may have been holding off on purchasing a new RV,” said Sheffer. “In addition to being great news for the RV consumer, RV dealers are thrilled because it gives them another sales tool.
“These Public Acts 1 and 2 of 2018 are not only benefiting family-run businesses, but the state economy as a whole,” Sheffer continued. “We are pleased the dedicated effort of MARVAC on behalf of RV enthusiasts across the state has come to such a beneficial outcome.”