Michigan Enacts Sales Tax Exemption for Vehicle Core Charge

Effective January 1, 2017, credits for the core charge attributable to a recycling fee, deposit, or disposal fee for a motor vehicle or recreational vehicle part or battery are excluded from Michigan’s definition of “sales price.” In order for the exclusion to apply, the recycling fee, deposit, or disposal fee must be separately stated on the invoice, bill of sale, or similar document given to the purchaser. (Act 515 (S.B. 991) and Act 516 (H.B. 5928), Laws 2017, effective January 1, 2017)

Posted on January 19, 2017