Pay lower sales tax on new RV purchase in Michigan

Pay lower sales tax on new RV purchase in Michigan

 

By Bob Difley

Are you considering trading in your RV and buying a new one? Here’s a tip. Go to Michigan. The Michigan Association of Recreation Vehicles and Campgrounds (MARVAC) came out victorious in a five-year effort to change the state sales tax structure to benefit both RV dealers and RV buyers.

The tax plan, after being vetoed by Michigan governor Rick Snyder and subsequently overridden by the Michigan legislature, went into effect January 18th and allows the buyer of a new RV to pay sales tax only on the difference between the value of the trade-in and the new RV purchase price. For instance, if you sold or traded in your old RV for $50,000 and bought a new one for $100,000 you would only pay sales tax on the $50,000 difference rather than on the whole $100,000. That would be a savings (in Michigan with a 6% sales tax) of $3,000.

It’s a good time to buy as the 52nd Annual Detroit Camper & RV Show – Michigan’s largest RV show – opens on February 7th and runs through the 11th at Suburban Collection Showplace in Novi. RV buyers will have an excellent opportunity to take advantage of the substantial new tax savings.

You can find Bob Difley’s RVing e-books on Amazon Kindle.

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6 thoughts on “Pay lower sales tax on new RV purchase in Michigan

  1. Michael Fisher

    If you purchase a Rv / MH outside BuT you will only pay the sales tax once you bring it back to MY and register it.
    There is a way around it and that is if you are a Disabled American Veterans Service Connected then you must submit a form and a copy of the sales tax and the State of MY will refund what you paid for the vehicle.You also can be given expands free travel using the NY S Thruway but you will need to pay tolls on bridge. There are additional things like plates and such.This applies to auto MHRV and for multi owned vehicles.The veteran must be in the vehicle in his auto. So do yourself a favor and check it out at your NY AS DMV! <fish<

  2. Mike Gregg

    In Indiana you only pay the sales tax on the difference.

  3. Mitch Stevens

    When I bought my RV brand new in California I paid no California state sales tax on that purchase as I paid the sales tax in my home state when I registered the vehicle at the DMV.

    My experience has been that sales tax is only collected in the state where the vehicle is registered…not where it is purchased.

    I would be interested to know if others have had a different experience.

  4. Larry Lucas

    No sales tax on anything, including vehicles and RV’s in Oregon!

  5. Tom Moeller

    I’ve never paid tax on a rv trade in in Florida,Georgia ar Alabama,states I’ve lived in.If a state required tax on a trade in that means you paid tax twice.What am I missing here.

  6. John Snell

    Minnesota’s been that way for years.

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