LANSING, Mich. (WZMQ) – A group of michigan lawmakers is proposing a sweeping tax overhaul designed to reduce costs for families by cutting or eliminating several property-related taxes.
The “Help up” plan includes multiple bills that would eliminate the real estate transfer tax, reduce property tax burdens and require utilities to pass savings on to customers. Supporters say the goal is to address rising costs of living across the state.
“This Help Up plan is designed to help families who are struggling with the high cost of living save money,” said Rep. Karl Bohnak (R-Deerton).
One part of the proposal would eliminate the real estate transfer tax, which homebuyers pay when purchasing property.
“So when you buy a home, there’s a transfer tax that the buyer has to pay,” Bohnak said. “Let’s say a young family, they’ve already saved up a lot of money for a down payment, and then they’re hit with this real estate transfer tax. We’re going to eliminate that.”
The broader plan also includes efforts to lower energy costs by requiring utilities to share savings from equipment purchases with customers.
“They’re big savings on buying equipment, and so we want them to share some of that savings with families,” he said.
However, the proposal would significantly reduce revenue that currently supports schools and local governments. Lawmakers say the plan is to replace that funding with a new tax on certain services.
“What the plan is, to have a specialty tax on a limited amount of services, things like golf club memberships and things like that,” Bohnak said.
The package is part of a broader conversation at the Capitol about restructuring Michigan’s tax system, including how essential services are funded.
“This is the beginning of the conversation. I’m sure there’s going to be a lot of horse trading, a lot of talk, but this is the first step to really make for meaningful savings,” he said.
Lawmakers say negotiations are ongoing, and it remains unclear whether the full package will advance this year.
