Michigan House Bill HB5955

Michigan 2023-2024 Regular Session

• Introduced: 9/26/24
• Refer: 9/26/24

Caption

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

Impact

The proposed amendments would significantly relieve the tax burden on homeowners who occupy their residential properties and have not claimed a principal residence exemption on other properties. This could encourage increased residential stability and investment in homeownership. Furthermore, farmers who live on their land and are engaged in its agricultural use stand to benefit, potentially fostering a more sustainable agricultural sector in the state. By exempting these property classes from the state education tax, the bill attempts to address the growing economic challenges faced by these groups.

Summary

House Bill 5955 aims to amend the General Property Tax Act of 1893 by introducing a new section that provides exemptions from the state education tax for specific property types. Specifically, it exempts residential real property and certain qualified agricultural properties from being taxed under the state education tax act for taxes levied after December 31, 2024. This legislation seeks to offer financial relief to homeowners and farmers actively involved in agricultural practices, reflecting a trend towards supporting property tax exemptions for specific demographic groups.

Contention

Discussion surrounding HB5955 could involve differing opinions on the appropriateness of providing tax exemptions for residential and agricultural properties. Supporters may argue that such measures are essential for stimulating economic development and supporting families and farmers during tough economic times. On the other hand, critics could express concern that property tax exemptions could lead to reduced funding for public education, as education tax revenues are crucial for schools. Thus, the potential impact on school funding could become a central point of contention as the bill progresses through the legislative process.