Inadvertent tax break for car insurers targeted for repeal

LANSING, Mich. (AP) — Gov. Rick Snyder and lawmakers inadvertently gave auto insurers a tax break worth $80 million a year.

Now, they want to end it — either to bail out Detroit’s school district or to address other priorities at a time Flint’s water crisis could cost the state hundreds of millions of dollars.

A 2012 law transferred an insurance program from the secretary of state’s office to an outside group. The move made car insurers eligible for a tax credit that was unanticipated.

Republican Rep. Al Pscholka says reversing the credit would rescue Detroit schools without hurting other budget priorities.

But the insurance industry opposes the plan and says it would result in a “car tax” on drivers.

The other potential funding source for Detroit is Michigan’s annual payment from tobacco companies.

We welcome thoughts and comments from our viewers. We ask that everyone keep their remarks civil and respectful. Postings that contain profanity, racist, or potentially libelous remarks will be deleted. We will delete any commercial postings, as well.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s