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 5397 eliminates a tax exemption for data center equipment under Michigan's Use Tax Act. It repeals Section 4cc, which previously allowed data center businesses to claim an exemption from use tax on equipment purchases. This change means data center operators will now pay the standard use tax on qualifying equipment instead of claiming the exemption. The bill directly affects data center businesses that previously utilized this tax exemption.
HB 5396 eliminates a sales tax exemption for data center equipment in Michigan. The bill repeals Section 4ee of the General Sales Tax Act (MCL 205.54ee), which previously allowed data centers to avoid paying the standard 4% sales tax on equipment purchases. This change directly affects data center businesses operating in Michigan, requiring them to pay sales tax on qualifying equipment starting when the bill takes effect. The policy change removes a specific tax break, aligning data center equipment purchases with standard sales tax rules.
SB 722 amends Michigan's Commercial Rehabilitation Act to update eligibility rules for tax credits aimed at revitalizing commercial properties. It clarifies definitions of "qualified facility" (including new requirements for retail food establishments in underserved areas) and allows commercial rehabilitation districts to be smaller than 3 acres in downtowns or near qualifying food stores. The bill explicitly excludes stadiums and casinos from receiving tax benefits. These changes aim to streamline the process for property owners seeking credits while ensuring funds target specific revitalization projects.
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.
SB 723 modifies Michigan's Brownfield Redevelopment Financing Act to streamline cleanup and development of contaminated or underused industrial sites. It defines "blighted" properties more clearly (e.g., sites with disconnections, fire hazards, or buried debris) and creates a new "transformational brownfield plan" that allows developers to capture tax revenues generated during construction. The bill establishes "construction period tax capture revenues" - taxes collected from wages paid during site improvements - which are calculated using a specific formula and reported to the state treasury. This policy directly affects developers, local governments, and property owners working on eligible brownfield sites, providing a new funding mechanism for redevelopment projects.
HB 5306 extends the deadline for granting new commercial rehabilitation tax exemptions in Michigan from 2025 to 2030 under the Commercial Rehabilitation Act. It directly affects property owners and developers who rely on these tax breaks for renovating older commercial buildings. The bill changes Section 16 of the act to prevent new exemptions after December 31, 2030, while allowing existing exemptions to continue until their original expiration dates. This is a straightforward policy extension with no new eligibility rules or funding changes.
HB 5395 modifies Michigan's Brownfield Redevelopment Financing Act to update tax credit rules for cleaning and redeveloping contaminated properties. The bill revises definitions of "blighted" property (including previously developed land and land bank properties) and clarifies how tax revenue captured during redevelopment - specifically construction-phase income taxes on wages - will be calculated and reinvested. Local authorities, developers, and municipalities working on brownfield sites will directly use these revised rules for tax increment financing. The changes aim to streamline financing for projects that clean up environmental hazards while redeveloping underutilized land.
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 108 amends Michigan's Tax Increment Financing Act to adjust how the "initial assessed value" is calculated for downtown development authorities. It specifically modifies the baseline property value used to determine tax increments for certain municipalities with historical circumstances, such as small cities with expired development plans or areas later designated as Renaissance Zones. The bill affects downtown development authorities and municipalities using tax increment financing in these specific scenarios. The key change ensures initial assessed value calculations account for past plan expirations or Renaissance Zone exemptions, maintaining a consistent baseline for tax increment calculations.
