A proposal from state Rep. Rylee Linting within comprehensive property tax and utility rate rollback reforms was advanced on Wednesday by the Michigan House.

Linting’s bill, House Bill 5874, 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 tax adds thousands of dollars in costs for Michigan families,” said Linting, of Wyandotte. “I’ve heard directly from people in communities I represent on this. Whether it’s a growing family upsizing or seniors downsizing through retirement, this tax adds barriers to making that move and punishes people for buying and selling their own home. At a time when housing is one of the most pressing issues facing Michigan families, the state should not be adding these types of costs at closing.”

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 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, with a stipulation 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 plan also creates a needed framework and oversight 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. Linting and the Michigan House recently advanced a separate plan to help lower electric bills and improve energy reliability for Michigan families who are struggling with rising monthly costs. Between the two initiatives, Michigan families would save nearly $1,400 every year through lower property taxes and lower monthly electric bills.

“These are lasting and needed changes that people will feel in their monthly budgets,” Linting said, noting the bills advanced on Wednesday would return nearly $5 billion to taxpayers.

The plans, contained within House Bills 5872-79, now move to the Senate for consideration.