Post by Logan on Jul 5, 2016 5:53:15 GMT -6
Lansing – Michigan Gov. Rick Snyder on Friday signed into law bills to scrap a tax credit that legislators say they inadvertently extended to auto insurers four years ago.
The repeal, previously agreed to by Snyder and Republican legislative leaders as part of a budget-balancing move, is projected to save the state $23 million in tax year 2016 and $80 million annually on full implementation.
Auto insurers fought to retain the credit, saying repeal would amount to a $40-per-vehicle tax increase on Michigan motorists, but House Appropriations Chairman Al Pscholka, R-Stevensville, called it a corporate handout that had not led to lower insurance rates.
Auto insurers qualified for the credit because of 2012 legislation that transferred administration of a program that covers medical costs of individuals injured in accidents involving uninsured drivers to a quasi-governmental entity that serves as Michigan’s insurer of last resort for motorists who can’t buy traditional insurance.
Read more: www.detroitnews.com/story/news/politics/2016/07/01/snyder-kills-accidental-auto-insurer-tax-credit/86609078/
The repeal, previously agreed to by Snyder and Republican legislative leaders as part of a budget-balancing move, is projected to save the state $23 million in tax year 2016 and $80 million annually on full implementation.
Auto insurers fought to retain the credit, saying repeal would amount to a $40-per-vehicle tax increase on Michigan motorists, but House Appropriations Chairman Al Pscholka, R-Stevensville, called it a corporate handout that had not led to lower insurance rates.
Auto insurers qualified for the credit because of 2012 legislation that transferred administration of a program that covers medical costs of individuals injured in accidents involving uninsured drivers to a quasi-governmental entity that serves as Michigan’s insurer of last resort for motorists who can’t buy traditional insurance.
Read more: www.detroitnews.com/story/news/politics/2016/07/01/snyder-kills-accidental-auto-insurer-tax-credit/86609078/