The Department of Veterans Affairs provides reminders to disabled veterans and their surviving spouses about eligibility for certain tax, license or fee-related benefits. This occasionally leads to questions about tax on vehicles.
Following a request from a dealer for clarification on “vehicle tax relief” benefits, MADA reached out to the Michigan Department of Treasury to confirm that Michigan does not provide a sales/use tax exemption on a vehicle purchased by a disabled veteran or his/her surviving spouse.
However, some specialty plates issued by the Secretary of State are eligible for free vehicle registration. Disabled veteran (DV) plates are included in this group.
The Michigan Vehicle Code provides an exemption from ad valorem taxes collected as part of vehicle registration for certain plates, which must be processed through an SOS branch. The tax exemption does not extend to all veterans, nor does it allow a vehicle to be purchased tax-free.
For more information on this topic see the Michigan Vehicle Code:
