Use tax: other; exemptions for certain watercraft; provide for. Amends secs. 2 & 4 of 1937 PA 94 (MCL 205.92 & 205.94).

SB 776 amends Michigan's Use Tax Act to update exemptions for watercraft trade-ins. It specifically clarifies that buyers can apply the agreed-upon value of a *documented* watercraft (one registered with the U.S. Coast Guard) as credit toward the purchase price of a new watercraft from a dealer. This change directly affects watercraft buyers, dealers, and the state’s tax collection process by allowing the trade-in value to reduce taxable purchases, provided the value is separately stated on the invoice. The bill does not change the $2,000 annual credit limit for watercraft trade-ins established in prior law.