Michigan House Speaker Proposes Major Tax Cuts Without Impacting School Funding
In a move that could reshape Michigan’s tax landscape, House Speaker Matt Hall (R-Richland Township) announced upcoming plans to significantly reduce real estate and property taxes. Aimed at benefiting both homeowners and businesses, these tax cuts are designed to alleviate financial pressures without reducing funding for schools and local governments.
Highlighting the pressing issue of high property taxes, Hall emphasized their role in creating an affordable housing crisis. This situation is particularly challenging for young families entering the housing market and seniors wishing to remain in their homes or downsize without facing increased tax burdens.
“We’ll have to come up with a more fair way to fund schools and local government,” Hall stated during his weekly press conference. “We’ll have to do that because we want to continue to make record investments in schools and local governments. We’ll come up with different ways to get the funding for local governments and schools.”
In addition to addressing property taxes, Hall proposed tax cuts on equipment and technology upgrades to incentivize private utilities to enhance service quality. “We’re also going to give a major incentive for more innovation and investment in our grid, our energy grid, and we need that,” he said. “We need a much more reliable, robust energy grid.”
This ambitious proposal by the House Republican leader is seen as a counter to Governor Gretchen Whitmer and legislative Democrats’ tax plans. Whitmer’s recent budget proposal includes a more modest property tax relief for seniors, which pales in comparison to Hall’s extensive tax cut strategy.
Hall projected that the elimination of the 6-mill property tax for K-through-12 schools, the real estate transfer tax, and the “pop up” increase in taxable value upon property sale or transfer would result in a combined rollback of approximately $4 billion. This would equate to a yearly savings of about $900 for the average Michigan homeowner.
These discussions arise as Governor Whitmer prepares for her eighth and final State of the State address, with affordability remaining a significant concern as 2026 approaches.
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