Gov. Snyder, Michigan state lawmakers agree to cut taxes, forgive driver ‘responsibility' fees

The Michigan Capitol Building in Lansing

LANSING – Michigan legislative leaders and Gov. Rick Snyder have struck a deal to cut individual taxes and forgive outstanding fees facing hundreds of thousands of drivers.

The Republican-led Legislature plans to approve the legislation Wednesday, says the spokeswoman for Senate Majority Leader Arlan Meekhof.

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The bills would 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.

Snyder had proposed raising the exemption to $4,500 to address unintended consequences of the federal tax overhaul due to how the state code is linked to the federal code.

As part of the deal, the Republican governor agreed to forgive all driver “responsibility” fees and quicken the elimination of newly assessed fees.