From the Associated Press — 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 Michigan Legislature. The state House and Senate overwhelmingly passed the legislation Wednesday after Governor 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.
State Senator John Proos voted in favor of both moves. He issued the following statement regarding driver responsibility fees:
“Driver responsibility fees unfairly punish Michigan drivers for violations that have already been penalized,” Proos said. “The fees have made it difficult for many residents who made a mistake to regain their license and get back to work, which has had an enormous negative impact on working families and the ability of Michigan businesses to find available skilled workers. It is time to end this punitive policy and provide relief and options to drivers with outstanding fees.”
