Plan also eliminates ‘pop-up tax,’ lowers barriers to homeownership

State Rep. Sarah Lightner today voted to advance a sweeping plan to lower costs for Michigan families by eliminating the state property tax, reducing energy bills, and removing barriers to homeownership.

The House-approved HELP UP – the House plan to Effectively Lower Property Taxes & Utility Payments – delivers broad, long-term relief by eliminating the state property tax, lowering utility costs, and eliminating fees and tax hikes that make it harder for people to buy and keep a home.

“Families across Michigan are tired of watching more and more of their paycheck disappear because of rising taxes and higher costs,” said Lightner, R-Springport. “This plan delivers real relief by cutting property taxes, lowering energy costs, and helping people keep more of their hard-earned money.”

Under House Bills 5872-5879, the average homeowner would save about $900 annually through the elimination of state-collected property taxes. The plan also ensures schools are held harmless, so classrooms and students do not lose resources as a result of eliminating the state property tax.

By eliminating personal property taxes, the plan will also reduce costs for energy providers, and a required $1 billion rate rollback will ensure those savings are passed directly on to customers. This will effectively wipe out the rate increases that have driven up bills over the past three years.

In addition, the plan eliminates the real estate transfer tax on home sales, saving buyers of an average Michigan home about $2,250 and reducing upfront costs that can prevent first-time buyers, relocating workers, and seniors from finding a home that fits their needs. The plan also eliminates Michigan’s “pop-up tax,” a hidden tax increase that can hit new homeowners shortly after purchasing a house.

“People should not be punished for buying a home, staying in their community, or trying to build a better future for their family,” Lightner said. “This package tackles the rising costs that are making it harder to get ahead and helps restore some stability for homeowners, workers, and seniors living on fixed incomes.”

Lightner and the Michigan House recently advanced a separate plan to help lower electric bills and improve energy reliability for people who are struggling with rising monthly costs. Between the two measures, Michigan families would save nearly $1,400 every year through lower property taxes and lower monthly electric bills.

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