State Representative Steve Frisbie (R-Pennfield) announced on Apr. 22 a legislative proposal to eliminate the state property tax in Michigan, aiming to provide relief for families facing rising homeownership costs.
The initiative comes as many Michigan residents find it increasingly difficult to afford homes due to higher prices and growing property tax burdens. Tight housing inventory and concerns over increased taxes when moving have contributed to fewer available homes and higher costs for prospective buyers.
“Homeownership used to be a realistic goal for working families. That’s no longer the case for too many people,” Frisbie said. “We’re seeing young families struggle to buy their first home, parents unable to upgrade as their families grow, and seniors afraid to move because they know their property taxes will jump. That’s not sustainable, and it’s not right.”
Frisbie’s bill is part of a broader package designed to lower the cost of owning a home in Michigan. In addition to eliminating all state-collected property taxes, the proposal would remove the state transfer tax on home sales—saving buyers of an average-priced home about $2,250—and end personal property taxes on business equipment such as machinery and computers.
Michigan’s current system includes various local millages set by voters or local governments; however, only the State Education Tax is determined at the state level by lawmakers in Lansing. Repealing this statewide levy would save homeowners with a taxable value of $150,000 around $900 per year and small businesses with properties valued at $400,000 about $2,400 annually.
“It’s something we can actually fix,” Frisbie said regarding repealing the State Education Tax. “If we’re serious about delivering real, immediate property tax relief, this is the most direct way for us to do it.” He added: “This is real money back in people’s pockets… It can help a young couple finally afford a mortgage, allow a growing family to find a home that fits their needs, or give a senior the freedom to downsize without being penalized by higher taxes.”
Frisbie emphasized that any reduction in revenue from these changes should be offset by cutting government spending elsewhere rather than reducing funding for education: “I’ve said it before and I’ll keep saying it until it’s fixed: We don’t have a revenue problem in Lansing. We have a spending problem,” he said.
Addressing concerns about school funding specifically he stated: “I have kids of my own. I would never support cutting education funding or propose eliminating state property taxes without making sure funding for our schools is replaced… We can and should both fund our schools responsibly and stop overburdening taxpayers.”
House Bill 5873 will soon be referred to committee consideration as legislators weigh potential impacts on homeowners across Michigan.
