State Rep. Ann Bollin on Wednesday 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.
“Michigan families are stretched thin, and people need relief they feel in their monthly budgets,” said Bollin, R-Brighton Township, in a release. “Eliminating the state property tax means more families can keep more of what they earn instead of sending it to Lansing. This plan puts taxpayers first and helps make Michigan more affordable for homeowners, seniors, and working families.”
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.
Legislation Bollin is spearheading would also eliminate Michigan’s “pop-up tax,” a hidden tax increase that can hit new homeowners shortly after purchasing a house.
“For too long, people have watched their housing costs climb higher and higher even after they’ve already bought a home,” Bollin said. “Families should be able to plan for the future without worrying about sudden tax spikes, higher utility bills, and extra fees driving them backward. This plan delivers meaningful relief and restores fairness for taxpayers.”
Bollin’s legislation, House Bill 5872, would ensure that a home’s taxable value does not automatically spike when it is sold. Instead, taxable value would continue to grow gradually under the existing cap, allowing homeowners to better plan for the future without the risk of sudden, dramatic increases. This approach also maintains stable and predictable funding for the essential local services communities rely on. Homeowners would still be able to realize the full value of their investment when they sell, because sale prices would continue to be determined by the free market.
Bollin 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.
