Beginning January 1, 2017, owners trading in a motor vehicle or trailer coach receive a sales tax credit for the vehicle’s trade-in value up to a maximum of $3,500. This is a $500 increase from the 2016 maximum of $3,000. The partial sales tax trade-in credit increases by law $500 annually. Note: the delivery date determines which credit amount is applied.
New RD-108 Form
The current version of the RD-108 is being replaced. Vehicle dealers may begin submitting the new edition of the RD-108 form for any vehicle delivered to the purchaser beginning January 1, 2017. (The Department will not accept any transactions submitted on the previous revision as of July 5, 2017.)
A dedicated line for the partial trade-in sales tax credit has been added to the new form. Therefore, dealers no longer need to submit the RD-108T when using the 2017 RD-108 form.
Please see the following links for additional information: