Michigan House Bill HB4118

Michigan 2023-2024 Regular Session

• Introduced: 2/22/23
• Refer: 2/22/23

Caption

Property tax: exemptions; exemption from state education tax for certain agricultural property; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 9q.

Impact

If enacted, HB4118 is expected to have a considerable impact on state funding, particularly as it pertains to educational programs that receive financing through the state education tax. While supporting agricultural interests, the bill raises concerns about potential decreases in funding for education, as the tax exemptions could lead to reduced revenue streams for local school districts. The legislation might be viewed as a move to prioritize agricultural sustainability at the expense of educational funding, igniting discussions about balancing economic support for farmers with the need for adequate educational resources.

Summary

House Bill 4118 proposes significant changes to property tax laws in Michigan, specifically amending the General Property Tax Act. The bill introduces a new section that provides an exemption from the state education tax for certain qualified farmland and associated personal property. This exemption is aimed at supporting agricultural activities and easing the tax burden on farms and related properties effective for taxes levied after December 31, 2023. The intent behind this legislation is to facilitate the sustainability of agricultural resources and bolster local farming communities.

Contention

Notable points of contention surrounding HB4118 include debates on whether the tax exemptions disproportionately affect educational funding, particularly in rural versus urban districts. Opponents of the bill express worries that by prioritizing agricultural tax relief, the state may inadvertently create disparities in funding for schools, thereby impacting educational quality. Proponents, however, argue that supporting agriculture is crucial for enhancing local economies and ensuring food security, casting the bill as a necessary measure to protect agricultural interests and promote economic growth within farming communities.