Battle Creek Times

Michigan lawmakers have advanced a set of bills designed to change how sales tax is applied to the purchase of consumer electronics when an old device is traded in. Under current Michigan law, consumers pay sales tax on the full price of a new electronic device, without deducting the value of any trade-in allowance for their old device. This means that individuals end up paying sales tax twice: once on the original purchase and again when trading in and buying a replacement.

The proposed legislation seeks to address this by exempting the trade-in value from being taxed during such transactions. If enacted, Michigan would align its policy with over 30 other states that already offer similar exemptions.

According to supporters, these changes are expected to reduce financial pressure on residents, especially those with lower incomes who may be more affected by double taxation. The bills also aim to encourage recycling by making it more attractive for consumers to trade in old devices rather than discard them, which could help reduce electronic waste in the state.

"These bills are straightforward and aim to bring Michigan in line with the majority of states by exempting the trade-in value of portable electronics. This change ensures that consumers are only paying tax on the amount they are actually spending towards a new device. By adopting this, Michigan will join over 30 other states that have already implemented similar measures."

"Personal electronic devices are indispensable in our daily lives, serving as essential tools for communication, education, and work. Making this change is not only good for the Michigan economy, but also beneficial to consumers, particularly those with lower incomes who are disproportionately affected by the current tax structure."

"Furthermore, these bills provide an inherent environmental benefit by incentivizing trade-in of portable electronics. Encouraging consumers to trade in their old devices promotes recycling and reduces electronic waste, contributing to a more sustainable future."