Michigan House Bill HB4967

Michigan 2023-2024 Regular Session

• Introduced: 9/12/23
• Refer: 9/12/23
• Report Pass: 9/28/23

Caption

Property tax: exemptions; exemption of certain property located in land equity cities under certain circumstances; provide for. Amends secs. 2, 78a & 89b of 1893 PA 206 (MCL 211.2 et seq.) & adds sec. 7yy. TIE BAR WITH: HB 4966'23

Impact

With the implementation of HB 4967, properties situated within certified land equity cities could see significant changes in their tax liabilities. If cities enact a land value tax and obtain voter approval, properties that meet specific criteria will be exempt from collection of qualified taxes for a duration that can be phased in over three years. This would encourage municipalities to explore land value taxation as a viable alternative to standard property tax systems, potentially changing how revenue is generated at the local level.

Summary

House Bill 4967 proposes an amendment to the 1893 General Property Tax Act, focusing on the taxation of real property within Michigan. The bill aims to exempt certain properties in designated 'land equity cities' from specific taxes, provided that these cities authorize a land value tax and have its requisite approval from voters. This dual requirement is designed to incentivize local governments to adopt land value taxes, which may reflect a shift toward more equitable taxation practices by prioritizing land use over property improvements.

Contention

Notable points of contention rest on the practical implications and administrative burden of transitioning to a land value tax system. Critics may argue that the bill could complicate existing property tax structures, and its reliance on voter approval may limit its efficacy in areas where public support for taxation changes may be low. Proponents, conversely, will likely assert that this shift could enhance equity in the tax system, alleviating burdens on property owners while focusing on the use and value of land. As communities grapple with issues of tax equity and funding for local services, the bill could spark complex discussions among stakeholders on its potential long-term benefits and challenges.