Senate OKs rescinding inadvertent tax break for car insurers - WNEM TV 5

Senate OKs rescinding inadvertent tax break for car insurers

Posted: Updated:
Stock photo Stock photo

The Michigan Senate has voted to rescind an annual tax break worth up to $80 million a year that was inadvertently given to auto insurers four years ago.

The move is part of a deal to enact the next state budget. Senators amended the legislation Wednesday to ensure that companies still qualify for the credit for much of this tax year but lose it going forward.

The bills won approval on 29-7 votes and go back to the House for final passage.

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.

Copyright 2016 The Associated Press. All rights reserved. 

Powered by Frankly
Powered by WorldNow CNN
All content © 2018, WNEM; Saginaw, MI. (A Meredith Corporation Station) . All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.