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The Latest: Legislature votes to cut taxes, forgive fees

The Latest: Legislature votes to cut taxes, forgive fees. (File - WWMT)

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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