Michigan currently requires consumers to pay sales tax on the full price of consumer electronics without accounting for the allowance given by the retailer for the trade-in of an old device. This means that consumers are effectively paying sales tax twice on the same device: once when the device is first purchased and again when it is traded in for a new device. This double taxation is not only unfair but also places an unnecessary financial burden on Michigan residents.

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.

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