LANSING, Mich. (AP) – The Michigan Legislature has voted to rescind an annual tax break worth up to $80 million that was inadvertently given to auto insurers four years ago.
The move is part of a state budget deal, which also was approved Wednesday. Senators amended the tax legislation to ensure that companies still qualify for the credit for much of this tax year but lose it going forward.
The bills won approval 29-7 in the Senate and then 80-28 in the House.
Industry leaders have conceded that the credit was awarded by mistake, but warn that premiums will go up. Some lawmakers question that warning, saying drivers never got a break when the industry qualified for the tax credit in the first place.___House Bills 5457-58