HB 5378 would create a new property tax exemption from the state education tax for homeowners who have no children attending public schools in Michigan. Specifically, starting December 31, 2026, property owners without dependents enrolled in Michigan public schools (full- or part-time) would qualify for this exemption. The bill amends Michigan's State Education Tax Act to add this provision, which is contingent on three related bills (HB 5376, HB 5377, and HB 5379) also becoming law. The exemption applies to property tax levied under the State Education Tax Act, directly affecting homeowners without school-aged children in public schools.
HB 5398 amends Michigan's General Property Tax Act to remove a tax exemption for data centers located in Renaissance Zones. Specifically, it eliminates the exemption previously available for "eligible data center property" in zones approved by the Michigan Strategic Fund in 2016 with at least $100 million in investment. This change directly affects data center operators in designated Renaissance Zones who previously qualified for reduced property taxes. The bill updates Section 7ff of the tax act to reflect this repeal, ensuring data centers no longer receive the tax break.
HB 5407 expands property tax exemptions for surviving spouses of disabled veterans in Michigan. It modifies existing law to include surviving spouses who receive dependency and indemnity compensation from the U.S. Department of Veterans Affairs (under 38 USC 1310-1318), in addition to those already covered. The exemption applies to homestead property owned by the surviving spouse without requiring reapplication after 2025, continuing as long as they don’t remarry. This directly affects eligible surviving spouses of veterans who died while receiving VA disability benefits.
HB 5377 would allow property owners without children attending Michigan public schools to qualify for a property tax exemption on certain school millages under the Revised School Code. It directly affects homeowners who do not have children enrolled in public schools within the state. The bill amends specific sections of the school code (380.1211, 380.1212, and 380.1364) to establish this new exemption category. This change modifies existing tax eligibility rules but does not alter current tax rates or funding formulas.
SB 581 updates definitions in Michigan's downtown development law to clarify how tax increment financing (TIF) programs operate. It specifically revises the definition of "downtown district" to allow multiple geographic areas within a business district under certain conditions (like inter-municipal agreements), defines "captured assessed value" for TIF calculations, and limits "catalyst development projects" to one per authority (requiring $300 million+ investment in cities over 600,000 population). These changes directly affect municipalities operating downtown development authorities that use TIF to fund redevelopment. The bill focuses on precise terminology to ensure consistent application of existing TIF rules, without creating new funding mechanisms.
House Bill 4444 amends Michigan's general property tax act to modify property tax exemptions for homesteads owned by disabled veterans and their surviving spouses. The bill outlines the application process for these exemptions and specifies that those granted on or after January 1, 2025, will remain in effect without requiring reapplication. It also introduces methods for prorating the exemption if the property is not used as a homestead for the entire tax year. Additionally, the bill clarifies that properties exempt under this section will be subject to a specific disabled veteran's homestead tax, which will also be prorated accordingly.
HB 4682 modifies Michigan's property tax exemption for surviving spouses of veterans. It expands eligibility to include surviving spouses who qualify for dependency and indemnity compensation (under 38 USC 1310-1318) because their veteran spouse died from a service-connected disability. The exemption applies to homestead property owned by these surviving spouses, reducing their property tax burden. This change directly affects surviving spouses of veterans who meet specific U.S. Department of Veterans Affairs eligibility criteria.
HB 4801 would exempt property used as a principal residence by licensed in-home childcare providers (family or group child care homes) from Michigan property taxes starting in 2026. To qualify, owners must file an application with their local tax office, proving the property is their primary home and hosts licensed childcare under Michigan law. The exemption applies only to properties where a household member operates a childcare business meeting specific licensing requirements. This change directly affects homeowners running licensed childcare services in their homes, reducing their property tax burden after 2025.
HB 5225 modifies Michigan's property tax deferment program for summer property taxes, primarily affecting eligible homeowners aged 62+ or with specific disabilities (like blindness or veterans' status) and agricultural property owners. It updates income thresholds for deferment eligibility - current limits cap household income at $60,000 (adjusted annually for inflation after 2026) - and requires agricultural owners to meet gross receipts criteria. The bill mandates local treasurers to publish deferment notices, provide form assistance, and include deferred tax amounts in December tax statements, with payments due by February 15 without penalties. It also clarifies that agricultural deferment eligibility requires prior qualification before forming business entities like LLCs.
SB 196 modifies Michigan's property tax exemption for disabled veterans and their surviving spouses. It expands the existing homestead exemption to include surviving spouses of disabled veterans who were eligible before death, as long as they don't remarry. The bill requires applicants to submit a form to their local assessor by December 31 each year (with specific VA documentation proving disability status) and clarifies that exemptions apply to all property taxes for the year, with proration rules if the property isn't used as a homestead all year. This directly affects disabled veterans (defined as those with 100% VA disability rating, specially adapted housing assistance, or individual unemployability) and their surviving spouses owning qualifying homestead property.
