Multiple bills were introduced in the Michigan House to provide broad property tax reform, including a reduction of $5 billion in property taxes. While MTA is reviewing the proposal, the main concern is the fiscal implications the reform will have without guaranteed reimbursement provisions for lost revenue. The nine-bill proposal includes:
- House Bill 5872 would eliminate the residential “pop-up” tax. Currently, when a property is sold, its taxable value resets to match the current market value.
- HB 5873 would eliminate the six-mill State Education Tax.
- HB 5874 would repeal the state real estate transfer tax.
- HBs 5875, 5876 and 5877would amend statutes to reflect the repeal of the state real estate transfer tax.
- HB 5878 would eliminate ALL personal property taxes, including utility personal property taxes.
- HB 5879 would require public utilities to provide a correlating reduction in residential rates.
- HB 5880 would provide a 6% tax on services to be deposited in a dedicated fund with distribution to the state’s School Aid Fund and remaining funds allocated to local units of government.
Hearings on the bills are expected soon.