LANSING, Mich. — Michigan homeowners could be one step closer to seeing a significant reduction in their property tax bills after the Michigan House approved legislation that would eliminate the state's long-standing six-mill State Education Tax.
House Bill 5873, backed by House Republicans, would repeal the statewide property tax that currently helps fund Michigan's K-12 public schools. Supporters estimate the proposal would reduce property tax bills by approximately 14%, providing financial relief to homeowners facing rising housing costs, inflation, and increasing property assessments.
Republican lawmakers say the legislation is aimed at making homeownership more affordable, particularly for seniors living on fixed incomes and young families trying to purchase their first home.
State Rep. Steve Frisbie, R-Pennfield Township, said Michigan families deserve relief as the cost of living continues to climb.
"In a time where anything that could be done to help with affordability, this is something we can do to deliver results," Frisbie said.
Relief for Homeowners
The six-mill State Education Tax has been collected since the passage of Proposal A in 1994 and applies to most property owners across Michigan. While property tax increases are limited under Michigan law, rapidly rising home values have still resulted in many homeowners paying substantially more in taxes over the past several years.
Supporters argue eliminating the tax would leave more money in the hands of Michigan families while making homeownership more affordable across the state.
For homeowners struggling with higher mortgage payments, insurance premiums, and everyday expenses, a 14% reduction in property taxes could translate into hundreds of dollars in annual savings.
Questions About School Funding
The proposal has also generated significant debate because the six-mill tax currently generates roughly $3 billion annually for Michigan's School Aid Fund.
To offset the loss, House Republicans approved a companion measure, House Bill 5880, which would replace the education funding through a combination of General Fund appropriations, state spending reductions, and a proposed 6% tax on certain luxury, non-essential, and artificial intelligence-related services.
Because the two bills are tie-barred, neither can become law unless both are approved by the Legislature and signed by the governor.
Democratic lawmakers have questioned whether the replacement funding would provide schools with the same long-term financial stability as the existing education tax.
State Rep. John Fitzgerald, D-Wyoming, voiced concerns during debate.
"Without a clear and defined backfill to this, I'm concerned that this is truly a challenge not only for the individuals paying the tax but for the entire stream from schools to workforce that will be impacted," Fitzgerald said.
Education advocates have also warned that any interruption in funding could affect teacher salaries, classroom resources, transportation, building maintenance, and student programs if replacement revenue falls short.
Republicans: Lansing Has a Spending Problem
Republicans maintain that Michigan's budget is large enough to provide tax relief without harming education.
They argue the issue is not a lack of revenue but how state government prioritizes spending. Supporters believe lawmakers should identify savings elsewhere in the budget rather than continue relying on property taxes that many homeowners say have become increasingly burdensome.
The debate reflects a broader philosophical divide in Lansing over taxation and government spending. Republicans view the proposal as a way to reduce the tax burden on working families, while Democrats argue stable and predictable school funding should remain the state's top priority.
Senate Approval Still Needed
Although House Bill 5873 has passed the Michigan House, the legislation still faces several hurdles before becoming law.
The Michigan Senate has not yet taken up the proposal, and Democrats control that chamber. If senators amend the legislation or reject portions of the package, both chambers would need to negotiate a final version before it could be sent to the governor.
Whether the proposal ultimately becomes law remains uncertain, but the legislation has already sparked one of the state's biggest policy debates of the year.
For Michigan homeowners, the measure offers the possibility of meaningful property tax relief. For educators and school districts, however, the central question remains whether lawmakers can reduce taxes while ensuring that public schools continue to receive reliable, long-term funding.
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