In the Michigan legislature, property taxes are being rethought, echoing the concern of many residents that rising taxes do not adjust for household income.
House Speaker Matt Hall (R-Richland Township) said that the two-third majority needed to approve a plan for tax relief is only possible with bipartisan support. If passed, the bill would expand eligibility for the Homestead Property Credit which, for qualifying households, offers refunds and absorbs part of the property tax into rent charges.
Political strategist John Sellek observed that this may present a double-edged sword, as property tax relief could ease the burden on local taxpayers while subtracting a significant source of revenue from public schools.
In a Jan. 27 meeting held by members of the Wayne County Commission (WCC) Ways and Means Committee, county revenues came into question when revisions to property tax law and a dubious marijuana tax were considered.
The committee, which convenes to discuss financial matters affecting Wayne County residents, presented economic data from the 2025 fiscal year to demonstrate the importance of local revenue collections. In Wayne County, property taxes came in at about $392 million in the county’s General Fund, with projected increases throughout 2026, 2027 and 2028. One commissioner noted that sustaining these revenues—notably on property taxes, public roads and recreation becomes even more paramount as federal grants like ARPA dry up.
District 4 Commissioner, Cara Clemente, addressed her concerns over the legislative talks on property taxes.
“They haven’t really presented anything yet, but that could be a real problem,” she said.
Speaker Matt Hall, one of the figures behind the potential bill, said that House members were working on a proposal. He acknowledged the challenges of amending the state constitution to extend property tax credits but reframed it as a “tax shift” rather than an abridgment.
Additionally, Hall clarified that property tax breaks would target those who don’t directly benefit from government schools—those who don’t have children, enroll them in non-public schools, or opt for homeschooling. Cutting taxes for this group could reduce burdens for those who don’t benefit as much from reinvestment, while ensuring that the remaining share of tax payments go toward schools.
Michigan ranks 14th in the country for highest property taxes. In a 2024 survey by the Lincoln Institute For Land Policy, Detroit, out of 53 municipalities, had the highest tax burden for homeowners. Senator Sarah Anthony (D-Lansing) echoed the sentiment of many that “property taxes are out of control.”
Currently, the cap for increases is set at an annual 5% or the rate of inflation for a given year—whichever is less—under the 1994 Proposal A amendment. However, the tax ceiling is still too high for low- and median-income residents alike.
Among the most affected is the older demographic. As AARP notes, Americans 65 and older overwhelmingly prefer to remain in their homes as they age. The rise in home values over time benefits future resales yet increases taxability, leaving many older Americans shouldering high rates along with the cost of insurance and basic necessities. Joanna Firestone, 75, residing in a home of 34 years northwest of Detroit, put it this way in an interview with AARP.
“You’re sinking a little bit lower every year,” she said in alluding to a struggle to keep up with climbing taxes as income is stalled, particularly with regard to seniors.
Tax Foundation, a nonpartisan organization for tax policy reform, weighs the calls for radical tax policy changes or abolition against the risk of a crippled system.
“Property taxes are good,” Senior Policy Analyst Manish Bhatt said, in defending them as an economically viable revenue.
He noted that they are “the most efficient source of municipal funding” for their alignment with benefits received, as taxes are reinvested into public schools, police departments and other much-frequented public services. Additionally, in his words, property taxes are transparent; they can be disputed, unlike other levies like that of the standard sales tax.
Whether the property tax reforms spoken of by House Republicans are passed or not, the challenge lies in finding a way to alleviate the burden equitably.
A recent executive order, signed by Detroit Mayor Mary Sheffield on Jan. 30, contains promise.
The legislation aims to realign auditing with the standards of the International Association of Assessing Officers (IAAO)—promoting transparency as to how property values are calculated. This, she says, can prevent the over-assessments that have, for a long time, decreased residents’ faith in the evaluation system. The order’s other injunctions — to align tax assessments with recent fluctuations in market value and economic indicators—also serve to boost accuracy.
Critics, though, argue that Sheffield’s legislation focuses more on the auditing process than making sure results are fair and determinable. Nonetheless, Sheffield’s move is precedent-setting at the city level. It concurs with a key intent of the Republican-led proposal: to align statistics more closely with the human condition.
Speaker Matt Hall, featured on WLS Lansing, affirmed his commitment to a revenue-neutral solution that wouldn’t raise taxes, but fund governments and schools in a way that is more equitable.
Once drafted, a statewide bill is expected to be on the table for voting next year in the legislature.
