Michigan House Passes Property Tax Cut Package After Heated Debate

Michigan House approves GOP-backed property tax relief plan targeting homeowners, seniors and businesses

Michigan House Republicans on Tuesday approved a sweeping property tax relief package they say could save families about $1,400 a year by eliminating several taxes tied to homeownership and utility costs.

The legislation now heads to the Michigan Senate and includes proposals to eliminate the state’s 6 mill State Education Tax, repeal the real estate transfer tax and end so called “pop up taxes” that can increase taxable values after a home sale.

Supporters say the package is aimed at addressing affordability concerns for homeowners, seniors and businesses.

“This tax is the only property tax assessed by the state,” said Republican Rep. Steve Frisbie during House floor debate. “Michigan residents realize that our property taxes are too high and they demand that we take action now.”

Frisbie said some homeowners are struggling under rising tax burdens.

“Recently, a constituent informed me his property tax bill had now exceeded his principal and interest payments,” Frisbie said. “That’s not a sustainable trend.”

He also argued that “pop up taxes” discourage older residents from downsizing because they could face significantly higher taxes on a smaller home. Frisbie said the package would also repeal personal property taxes on utilities tied to what he described as $1 billion in annual ratepayer savings over two years.

Democrats strongly opposed the legislation, warning it could reduce funding for schools, local governments and public safety services.

“We have seen this play before,” said Democrat Rep. Stephen Wooden. “A massive tax cut that will be spun as a benefit to everyday Michiganders, but will ultimately simply be a windfall to the wealthy, paid for by cutting services regular folks rely on.”

Wooden said the proposal could reduce school funding by billions of dollars.

“These bills would mean a $3.2 billion reduction to school funding,” Wooden said. “Schools are already being underfunded enough and they cannot take another hit.”

He also warned the legislation could affect road repairs, police and fire services and other local government operations if replacement revenue does not materialize.

Republicans backing the package have argued separate legislation tied to the plan would ensure funding for schools and local governments continues. Frisbie pointed to House Bill 5880 as part of the broader proposal.

The package passed the House largely along party lines and now moves to the Senate for consideration.