The Republican-controlled Michigan House of Representatives has passed an eight-bill package includes measures to cut property taxes.
CBS News reports the bill package is designed to end Michigan’s 6-mill tax, the 0.75% real estate transfer tax, and the pop-up tax (the charge the occurs after a house is transferred from one owner to another). The bill also includes provisions for lowering energy costs and freeze rate hikes by the state’s utilities.
State Rep. Jamie Thompson (R-Brownstown Township) welcomed the passage, declaring, “The property tax reform package removes the state property tax, so some people think that removes property taxes altogether. I think you just think that when you hear that, but it’s actually removing the 6 mills tax that the state charges on property taxes. With the property taxes and the energy package, the average homeowner is going to save about $1400 a year.”
However, House Democrats insisted the proposed tax cuts were reckless.
“I’m all for lowering property taxes; however, we have to do it in the most responsible way, and this what the Republicans proposed is not responsible,” said Rep. Donavan McKinney (D-Detroit). “Now, when you lower property taxes, you’re going to impact other funding mechanisms – for our roads, for our infrastructure, for our schools, they’re going to be disproportionately impacted by this legislation, whether our Republican colleagues know it or not.”
The likelihood of the bill becoming law is slim, considering the Michigan Senate is Democrat-controlled.
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