HB 4376 Michigan House · 2025-2026 Regular Session

Sales tax: exemptions; offset of the trade in value of personal electronics; provide for. Amends sec. 1 of 1933 PA 167 (MCL 205.51).

HB 4376 modifies Michigan's sales tax rules for trade-in values on vehicle purchases. It increases the annual adjustment for the maximum deductible trade-in value from $500 to $1,000, starting January 1, 2020. This change allows car buyers trading in vehicles to reduce the taxable sales price by more when purchasing new or used cars from dealers. The provision applies only when the trade-in value is separately stated on the sales invoice.

Issues: ✓ Budget & Taxes

Bill status passed both 4 of 5 stages cleared

Introduction

Apr 2025

Committee Review

Oct 2025

House Passage

Oct 2025

Senate Passage

Oct 2025

Governor

Introduced Apr 22, 2025 Last action Oct 23, 2025

Maddy AI version diff · 1 comparison

What changed between versions

House Introduced Bill → As Passed by the House · 4 edits · Oct 21, 2025

MODERATE

This bill amends Michigan's General Sales Tax Act to update definitions and clarify how sales tax is calculated on various transactions. It adds new definitions for 'Person' and 'Business' to clarify who is subject to the tax, and expands the list of items and charges that are included in or excluded from the sales price for tax purposes. The changes also address how trade-ins, discounts, and delivery charges are treated for tax calculation.

Scope change

The bill expands the definition of 'Person' to include counties and other groups acting as units, and clarifies the definition of 'Business' to include activities engaged in for gain or advantage, direct or indirect.

DEFINITION

Added new definitions for 'Person' to include counties and any group or combination acting as a unit, and added a definition for 'Business' to clarify that it includes activities engaged in for gain, benefit, or advantage, either direct or indirect.

Modified the definition of 'Sales price' to clarify what is included and excluded from the sales price for tax purposes, including specific rules for trade-ins, discounts, delivery charges, and installation charges.

Added new exclusions from 'Sales price' for certain trade-ins, including a portable electronic device used as part payment for a new or used portable electronic device, and clarified the agreed-upon value limits for motor vehicles and recreational vehicles used as trade-ins.

TIMELINE

Added provisions requiring the department to cancel outstanding balances related to delivery and installation charges on notices of intent to assess and final assessments issued before a certain date, and prohibiting new assessments for such charges for tax periods before that date.

Floor votes · House Oct 21, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Oct 23, 2025

Committee

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION

upper

Oct 23, 2025

Upper · Passed

PASSED BY HOUSE WITH IMMEDIATE EFFECT

upper

Oct 21, 2025

Lower · Passed

passed; given immediate effect Roll Call #254 Yeas 71 Nays 33 Excused 0 Not Voting 6

lower

Oct 21, 2025

Introduced

amended

lower

Sep 9, 2025

Committee

referred to second reading

lower

Sep 9, 2025

Lower · Passed

reported with recommendation without amendment

lower

Apr 22, 2025

Committee

referred to Committee on Finance

lower

Apr 22, 2025

Introduced

introduced by Representative Rep. Will Snyder

lower

1 primary · 15 co-sponsors