House Government Operations Committee Chairman Brian BeGole has spearheaded movement on a series of bills that will provide property tax and utility rate relief for Michigan residents.

“Whenever I talk with people I represent across Shiawassee, Genesee and Saginaw counties, the high cost of living is a consistent concern – especially with housing and energy,” said BeGole, of Antrim Township. “Between high property taxes, closing costs, and rising utility bills, the system is stacked against families and small business owners who are trying to work towards a stable life. House Republicans are stepping up and delivering on these priorities with plans that will help workers, families and local job providers save money year after year. They cut red tape and lower taxes to create real relief for a wide range of people, not just specific groups.”

One bill in the package eliminates the state’s real estate transfer tax, an often hidden and costly burden that arises when a deed or property is transferred from one owner to another. This transfer tax often adds to the cost for buyers, including many people looking to buy their first home, as it can get baked into a higher listing price. It also can make people, including seniors living on fixed incomes, more reluctant to sell.

Michigan’s real estate transfer tax is $3.75 per $500 of the sale price for property. For a home purchased for $300,000, the plan would save a new homeowner $2,250.

The reforms eliminate the 6-mill state education tax and stipulate that the state’s School Aid Fund will be compensated for any loss of revenue that may arise from the elimination of the tax. The plans also get rid of remaining personal property taxes for job providers. These taxes on equipment like machinery, computers, and other things operate as a counterproductive policy for growth for small businesses and delivering lower prices for consumers.

Average homeowners would pay roughly 14 percent less in overall property taxes through the series of bills, leaving more money to help pay for groceries, home improvements, and other household expenses.

Due to rising inflation costs and home values, total state property tax revenues have increased by $6 billion since 2018.

“This money should be returned to taxpayers who are struggling with their own budgets, not further growing state government’s budget,” BeGole said, noting that Michigan families will save over $1,100 every year through eliminating state property taxes and savings generated on monthly electric bills through the legislation. “This is one of the biggest tax reforms in state history, and its focus is making life more affordable for hardworking people throughout our state.”

The plan was advanced by the Michigan House today following support in BeGole’s House Government Operations Committee. The bills, House Bills 5872-79, now move to the Senate for consideration.