A new bill introduced by state Rep. Rylee Linting will allow people who own a home or are looking to buy one across southeast Michigan to save.

Linting’s bill, House Bill 5874, joins others in eliminating 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.

The bill is part of a broader plan to reform property taxes in Michigan and create savings for workers, families and job providers. This includes eliminating the 6-mill state education tax on property, creating a needed framework for utilities to roll back rates for customers, and more. 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.

“The cost of owning a home has become incredibly expensive, especially for young families,” said Linting, of Wyandotte. “The transfer tax only adds to that cost for buyers 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.

“The median age of first-time homebuyers in the U.S. rose to 40 last year, and studies have shown that a growing number of people do not plan to buy a home or are unsure if they ever will. Michigan workers and families are being taxed out of the American Dream. The current setup is untenable both for people who currently live in our state and those who are looking to locate here. As people Downriver continue to deal with high costs of living, these plans will provide needed relief.”

Michigan’s real estate transfer tax is $3.75 per $500 of the sale price for property. For a home purchased for $300,000, Linting’s plan would save a new homeowner $2,250. The legislation stipulates that the state’s School Aid Fund will be compensated for any loss of revenue that may arise from the elimination of the tax.

Due to rising inflation costs and home values, total state property tax revenues have increased by $6 billion since 2018. Linting said that surplus should be returned to taxpayers.

“If we are serious about respecting taxpayers and making Michigan affordable, we must tackle property taxes and housing costs. That involves policies that will allow a wide range of people to save – not just specific groups,” Linting said. “These plans will provide real savings year after year for an overwhelming majority of people in Michigan.”