This week, a major property tax reform package aimed at lowering costs was introduced in the Michigan House of Representatives. Nicknamed HELP US (House Effectively Lowering Property Taxes and Utility Payments), the sponsors state their plan will cut nearly $5 billion in property taxes and reduce utility bills by $1 billion statewide.
Key Points:
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- House Bills 5873 – 5880 were introduced by Representatives Steve Frisbie (R-Pennfield Twp.), Rylee Linting (R-Grosse Ile), Karl Bohnak (R-Deerton), Thomas Kuhn (R-Troy), Ron Robinson (R-Utica), Josh Schriver (R-Oxford), Jamie Thompson (R-Brownstown), and Luke Meerman (R-Coopersville).
- It eliminates the 6-mil state-collected property tax.
- The proposal eliminates the real estate transfer tax, which is a fee paid at closing. The bill stipulates that the state’s School Aid Fund would be compensated for any revenue loss that may arise from eliminating the tax.
- Eliminates the remaining personal property taxes on businesses and utilities.
- Requires natural gas and electric utility companies to pass down savings they will receive through personal property tax reforms in the most recent tax year to customers. Additionally, they would not be able to file for rate increases for two years after the savings are distributed.
The bills were referred to the House Government Operations Committee for consideration.
