Budget & Taxes (Property Tax)

in committee · Michigan · Senate May 13, 2025

SB 292: Property tax: exemptions; property tax exemption for principal residence of certain senior citizens; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy.

Senate Bill 292 proposes a new property tax exemption for certain senior citizens in Michigan, effective for taxes levied after December 31, 2025. It would exempt the principal residence of individuals aged 70 or older from property taxes. To qualify, an individual must own and occupy the property as their primary home and file a claim with their local assessing unit. Once granted, the exemption remains in effect as long as the individual continuously owns and occupies the property. The bill also states the legislature's intent to annually appropriate state funds to compensate local governments for any resulting lost revenue.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates property tax exemption for seniors, reducing government revenue from property taxes, directly limiting tax collection and weakening fiscal revenue streams.95% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Michigan · Senate Jun 25, 2025

SB 442: Property tax: exemptions; property tax exemption for certain nonprofit housing property; modify. Amends sec. 7kk of 1893 PA 206 (MCL 211.7kk).

SB 442 creates a new state-level process for charitable nonprofit housing organizations to obtain property tax exemptions on specific residential properties (like single-family homes, duplexes, or small multi-unit buildings). Organizations must apply to the state tax commission, which has 60 days to approve or deny the exemption. If approved, the exemption lasts 3-5 years (depending on property type) or ends sooner if the property is occupied by an income-eligible person (family income ≤120% of statewide median) or transferred. The bill modifies existing rules to shift from local resolution-based exemptions to a centralized state application system.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exemptions for nonprofits housing income-eligible residents (≤120% median income), reducing their tax burden to support affordable housing affordability.95% confidence ✓ HousingSupports HousingCreates tax exemptions for nonprofit housing, reducing costs to expand affordable housing options through state-level process for nonprofits.95% confidence

Sub-Topics Property Tax Tax Incentives Affordable Housing Housing Finance Property Taxes

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in committee · Michigan · Senate Jul 17, 2025

SB 485: Taxation: specific tax; application of tax reverted property specific tax to certain tax delinquent property sold or otherwise conveyed by a foreclosing governmental unit; provide for. Amends secs. 4 & 5 of 2003 PA 260 (MCL 211.1024 & 211.1025). TIE BAR WITH: SB 484'25

SB 485 creates a new tax on properties sold by government units (like cities or counties) after tax foreclosure. It applies to owners of these "reverted" properties, requiring them to pay a tax calculated as if the property were subject to regular property taxes. Revenue from the tax is split: 50% goes to local taxing units (like school districts), and 50% to the government authority that sold the property. The bill also specifies that properties in designated Renaissance Zones are partially exempt from this tax, with certain portions still distributed to the relevant taxing units.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new tax revenue split 50/50 to local taxing units (e.g., schools) and selling government, directly funding public services through tax collection.90% confidence ✓ EducationSupports Education50% of tax revenue from foreclosed properties goes to local taxing units (including school districts), directly increasing school funding without explicit education policy changes.85% confidence

Sub-Topics Property Tax

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in committee · Michigan · Senate Jul 17, 2025

SB 484: Property tax: exemptions; exemption of certain tax delinquent property sold or otherwise conveyed by a foreclosing governmental unit; provide for. Amends sec. 7gg of 1893 PA 206 (MCL 211.7gg). TIE BAR WITH: SB 485'25

SB 484 creates a 5-year property tax exemption for real estate sold or conveyed by land banks or local governments after tax delinquency. This applies to properties sold under the Land Bank Fast Track Act or Tax Reverted Clean Title Act, beginning the year after sale and lasting through the fifth December 31. The exemption does not apply to properties in brownfield redevelopment plans if specific conditions are met (e.g., land bank bonds or brownfield plan details). Properties under this exemption remain subject to the tax levied under the Tax Reverted Clean Title Act.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 5-year property tax exemption for land bank-sold properties, offering tax relief to new owners and encouraging redevelopment of delinquent properties.95% confidence ✓ HousingSupports HousingCreates 5-year property tax exemption for land bank-sold tax-delinquent properties, incentivizing redevelopment into housing and supporting affordable housing development.85% confidence

Sub-Topics Property Tax Tax Incentives Community Development Property Taxes

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in committee · Michigan · Senate May 29, 2025

SB 344: Individual income tax: property tax credit; credit percentages; modify. Amends secs. 508, 510 & 522 of 1967 PA 281 (MCL 206.508 et seq.). TIE BAR WITH: SB 345'25

SB 344 modifies Michigan's property tax credit for individual income tax filers by changing the percentage rates used to calculate the credit. It directly affects homeowners who claim this credit, particularly those with lower property values who benefit from the credit against their state income tax. The bill amends specific sections of Michigan's Income Tax Act to adjust the credit percentages, making the calculation more precise. This change alters how much property tax can be deducted from income tax liability for eligible residents.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies property tax credit percentages to provide tax relief for homeowners, especially lower-property-value filers, aligning with tax relief indicators for middle/lower income.85% confidence

Sub-Topics Property Tax

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in committee · Michigan · Senate May 29, 2025

SB 345: Individual income tax: property tax credit; homestead property tax credit; increase, and modify income threshold. Amends secs. 504 & 520 of 1967 PA 281 (MCL 206.504 & 206.520). TIE BAR WITH: SB 344'25

SB 345 increases the property tax credit threshold for Michigan homeowners, raising the taxable value cap for homestead property tax credits from $135,000 to $160,700 for the 2024 tax year. Beginning in 2025, the cap will automatically adjust annually based on the U.S. Consumer Price Index, rounded to the nearest $100. This change directly affects homeowners whose property value falls within the new threshold, allowing them to claim a larger credit against their state income tax for qualifying property taxes. The bill modifies Section 520 of Michigan’s Income Tax Act to implement this adjustment.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax credit threshold, providing tax relief to Michigan homeowners by raising the cap from $135k to $160.7k and indexing it to CPI.95% confidence ✓ HousingSupports HousingIncreases property tax credit threshold for homeowners, lowering tax burden and directly supporting housing affordability through tax relief for qualifying residents.90% confidence

Sub-Topics Property Tax Property Taxes

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passed both · Michigan · House Feb 24, 2026

HB 4079: Property tax: special assessments; income eligibility cap for special assessment deferment program; modify. Amends secs. 3 & 4 of 1976 PA 225 (MCL 211.763 & 211.764). TIE BAR WITH: HB 4080'25

HB 4079 adjusts the income limit for homeowners aged 65 or older, or those totally and permanently disabled, who qualify for a property tax deferment on special assessments. Currently set at $34,900 as of October 2022, the bill replaces this fixed amount with an annual adjustment based on the Detroit-area Consumer Price Index (CPI), meaning the limit will rise or fall each year with local inflation. The state treasurer will calculate the new limit annually using the prior year's CPI data, rounding to the nearest dollar. This change directly affects eligible homeowners seeking to defer special assessments on their primary residences without immediate payment.

Topics ✓ Budget & TaxesSupports Budget & TaxesAdjusts property tax deferment income cap to inflation, preventing loss of eligibility for seniors/disabled as costs rise, providing ongoing tax relief for lower-income homeowners.95% confidence ✓ HousingSupports HousingAdjusts income cap for property tax deferment to inflation, maintaining affordability for senior/disabled homeowners and preventing tax burden from outpacing income growth.85% confidence

Sub-Topics Property Tax Property Taxes

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signed · Michigan · Senate Oct 8, 2025

SB 565: Property tax: exemptions; fund from which municipalities are reimbursed for certain revenue lost due to the small business property tax exemption; modify to require that unused funds lapse to the general fund. Amends sec. 3a of 2000 PA 489 (MCL 12.253a).

SB 565 amends Michigan's property tax reimbursement fund rules to require that unused funds from the local government reimbursement fund lapse (transfer) to the state's general fund at year-end, instead of remaining in the fund. It directly affects municipalities that receive state reimbursements for revenue lost due to small business property tax exemptions under the General Property Tax Act. The key change modifies Section 3a of the Michigan Trust Fund Act (2000 PA 489) to ensure unspent funds are returned to the state's general budget annually, rather than carrying over. This is a procedural adjustment to fund management, not a change to tax exemptions or reimbursement eligibility.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires unused property tax reimbursement funds to lapse to general fund, enhancing fiscal responsibility by preventing fund accumulation and ensuring funds are available for broader state budget use.85% confidence

Sub-Topics Property Tax Tax Incentives

in committee · Michigan · House Oct 21, 2025

HB 4787: Property tax: exemptions; property tax exemption for certain utility personal property; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy. TIE BAR WITH: HB 4788'25

HB 4787 would exempt utility companies' replacement electric distribution infrastructure from general property taxes after December 31, 2025, if the infrastructure replaces older systems. To qualify, owners must apply annually by March 1 to local assessors and submit detailed reports by March 31 each year, including location, description of the replaced infrastructure, and safety/reliability improvements. The exemption depends on another bill (HB 4788) being enacted first. This directly affects electric utilities upgrading their aging infrastructure.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts utility infrastructure from property taxes, reducing state/local tax revenue. Directly weakens government fiscal resources through corporate tax break, aligning with 'oppose' indicators.90% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Michigan · House Oct 28, 2025

HB 4041: Property tax: exemptions; continuation of poverty exemption, without subsequent application, for homeowner who previously established eligibility; provide for in certain circumstances. Amends sec. 7u of 1893 PA 206 (MCL 211.7u).

HB 4041 would automatically renew property tax exemptions for eligible homeowners who previously qualified under the poverty exemption program, eliminating the need for them to reapply annually. It directly affects low-income homeowners in Michigan who have already established eligibility for the exemption under current law. The bill amends Michigan law to require automatic continuation of this exemption in specified circumstances, reducing administrative burdens for qualifying residents. This change streamlines the process by removing annual application requirements for those already verified as eligible.

Topics ✓ Budget & TaxesSupports Budget & TaxesAutomatically renews property tax exemptions for low-income homeowners, reducing their tax burden and administrative hassle per tax relief indicators.90% confidence ✓ HousingSupports HousingAutomatically renews property tax exemptions for low-income homeowners, reducing financial burden and preventing displacement - directly advancing housing affordability for qualifying residents.92% confidence

Sub-Topics Property Tax Homeownership Property Taxes

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