Budget & Taxes (Property Tax)

HB 4088 adjusts the property tax credit for Michigan homeowners by raising the taxable value cap for homestead eligibility from $135,000 (through 2021) to $196,500 starting in 2026. It requires annual adjustments to this cap based on the U.S. Consumer Price Index (CPI), rounded to the nearest $100, to maintain its real value over time. The bill directly affects homeowners claiming the property tax credit who own homestead properties with taxable values exceeding the new cap. This change modifies the eligibility threshold under Section 520 of Michigan's Income Tax Act, ensuring the cap keeps pace with inflation.

HB 5235 clarifies who qualifies for Michigan's property tax credit on primary homes by expanding the definition of "owner" to include homeowners who place their homestead in revocable trusts or qualified personal residence trusts. This change directly affects homeowners using these specific trust structures to hold their primary residence, ensuring they remain eligible for the tax credit. The bill modifies existing law to explicitly include grantors (homeowners) who transfer their homestead into such trusts, removing ambiguity about their eligibility. It does not change the credit amount or create new requirements, only defining who qualifies under current rules. The bill is currently in committee review after being introduced in November 2025.

HB 5275 modifies Michigan's property tax credit for individual income tax by changing the definition of "disabled veteran" and removing a limit on the credit amount for qualifying veterans. The bill amends sections 506 and 520 of the 1967 Income Tax Act (MCL 206.506, 206.520) to expand eligibility and eliminate a cap previously applied to this credit. This directly affects disabled veterans who claim the property tax credit, allowing them to receive the full credit amount without the prior limitation. The change is a specific policy adjustment to the tax code, not a new benefit.

HB 5272 proposes to create a new property tax credit for disabled veterans and surviving spouses (widows/widowers) of disabled veterans who rent or lease a home in Michigan. It amends Michigan’s income tax law to add this credit and specifically exclude it from the state’s income tax cap. This would directly benefit qualifying renters who are disabled veterans or surviving spouses, providing them with a tax reduction they currently cannot access under existing rules. The bill does not change other tax credits or the overall tax structure.

HB 5246 changes Michigan's property tax classification by adding "parcels used to cultivate marihuana" to the definition of commercial real property under the General Property Tax Act. This means properties used for marijuana cultivation will now be taxed at commercial rates instead of potentially lower agricultural rates. The bill directly affects licensed marijuana cultivators and property owners who operate cannabis farms. The key provision amends Section 34c(2)(b)(v) of the tax act to explicitly include marijuana cultivation within the commercial property category, using definitions from Michigan's Marihuana Act. This is a straightforward policy change to align tax treatment with the commercial nature of cannabis cultivation operations.

SB 423 ends specific programs that helped homeowners pay overdue property taxes and avoid foreclosure. It directly affects property owners with delinquent taxes who previously could use these reduced payment options. The bill modifies existing law by setting expiration dates ("sunsetting") for these programs, meaning they will no longer be available after the specified dates. This change removes temporary relief measures, requiring affected homeowners to pay full delinquent taxes or face standard foreclosure processes.