Taxing your next trade-in
would be a bad idea.
Your Subtitle text
Your Wisconsin Trade-in Credit
HOW IT WORKS NOW
Ever since Wisconsin first enacted a sales tax in 1962, our state's consumers have received a sales tax credit for the value of a vehicle they trade in. That means you pay tax on the real value of the deal: the difference in value between the vehicle you’re buying and the one you’re trading in — not on the whole price of the purchased vehicle without subtracting your trade-in.
WHAT YOU SAVE
For example, when you buy a $25,000 vehicle and trade in another valued at $10,000, you pay the state’s 5 percent sales tax only on the $15,000 difference — for a savings of $500.
THE THREAT
The state budget crunch is leading to a search for new revenue. Lawmakers considered eliminating the trade-in credit before but left it intact. Now, some may see taking your credit as a way to extract $100 million more per year from Wisconsin taxpayers.
The state budget crunch is leading to a search for new revenue. Lawmakers considered eliminating the trade-in credit before but left it intact. Now, some may see taking your credit as a way to extract $100 million more per year from Wisconsin taxpayers.
LET
YOUR VOICE BE HEARD!
Ask your lawmakers to preserve your trade-in credit. Explain that ...
Ask your lawmakers to preserve your trade-in credit. Explain that ...
- I paid sales tax on my trade-in vehicle when I bought it. Why should I pay on it again? That’s double taxation, and it would be unfair.
- This is piling on! Just when times have gotten really tight and gas costs are really high, somebody may want to take away my trade-in credit. That doesn’t make sense.
- If I’m looking for a vehicle that gets better gas mileage and is easier on the environment, eliminating the trade-in credit would make that more expensive and less likely.
- Eliminating the trade-in credit would be a major TAX INCREASE, and I’m not buying it!