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.