Michigan Legislature votes to cut taxes, forgive driver responsibility fees

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LANSING, Mich. (AP) (2/14/2018) - The Latest on the Michigan's Legislature votes to cut taxes and forgive driver responsibility fees (all times local):

4:45 p.m.

Michigan drivers will get a tax cut, and those who owe extra fees assessed for certain traffic infractions will see them waived under bills approved by the Legislature.

The House and Senate overwhelmingly passed the legislation Wednesday after Gov. Rick Snyder and legislative leaders reached a deal. Snyder will soon sign the tax reduction and debt forgiveness plans into law.

The bills gradually raise Michigan's personal tax exemption to $4,900 by 2021 - $600 higher than under current law. That's roughly a $25 tax cut per person, or $100 for a family of four.

The legislation also clarifies that Michigan's state income tax exemption continues. There has been concern that the federal tax overhaul inadvertently removed the exemption.

All outstanding driver "responsibility" fees - which total $637 million - will be forgiven in October. Newly assessed fees will end then, too - a year earlier than planned.

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2 p.m.

Michigan legislative leaders and Gov. Rick Snyder have struck a deal to cut individual taxes and forgive outstanding fees facing hundreds of thousands of drivers.

The Republican-led Legislature plans to approve the legislation Wednesday, says the spokeswoman for Senate Majority Leader Arlan Meekhof.

The bills would gradually raise Michigan's personal tax exemption to $4,900 by 2021 - $600 higher than under current law. That's roughly a $25 tax cut per person, or $100 for a family of four.

Snyder had proposed raising the exemption to $4,500 to address unintended consequences of the federal tax overhaul due to how the state code is linked to the federal code.

As part of the deal, the Republican governor agreed to forgive all driver "responsibility" fees and quicken the elimination of newly assessed fees.

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