LANSING, Mich. — State Rep. Steve Frisbie today celebrated House passage of his bipartisan plan to stop Michigan consumers from being taxed twice when trading in electronic devices for an upgrade.

House Bill 4375 updates the state’s Use Tax Act to exempt the trade-in value of portable electronic devices — like cell phones, tablets, and laptops — from being taxed when applied toward a new purchase. The plan is tie-barred to House Bill 4376, sponsored by Rep. Doug Snyder, which makes matching updates to the Sales Tax Act.

“When people trade in their old phones or laptops, they shouldn’t have to pay tax on money they never actually spend,” Frisbie said. “This reform protects Michigan consumers, saves families money, and helps local retailers compete with big-box stores.”

Over 30 states – including Indiana and Wisconsin – already exclude trade-in values when calculating sales and use tax. Michigan’s change would bring the state in line with the majority of the country and reduce unnecessary costs for consumers.

HB 4375 passed the House with bipartisan support after advancing 9-1 through the Finance Committee. It now moves to the Senate for further consideration.

Rep. Frisbie represents Michigan’s 44th House District.

Media Contact:
Dakota Gordon | dgordon@house.mi.gov