As housing prices continue to rise in Michigan, lawmakers are considering ways to provide more property tax relief.
Two bills with bipartisan support would expand the homestead property tax credit by raising the property value cap and increasing income eligibility levels. Jason Lachowski with the AARP of Michigan says the proposals would help older Michiganders by easing their tax burden and allowing them to stay in their homes and communities.
“It’s difficult to absorb the rising costs that we’ve seen for things like food, utilities, and more,” Lachowski said. “And then property tax increases can have a major impact then on an older adult’s household budget.”
Lachowski cites an AARP study showing 85% of adults over age 45 say higher property taxes will make it harder for them to stay in their homes. He adds these bills have support across the aisle, which he says is key this year with Michigan’s divided legislature.
“This package of bills is the perfect example of where the two parties, as different as they can be, have come together to identify a problem, identify a solution, and are going to push for it for passage.”
If the bills pass, the property value cap would increase from $135,000 to $161,700. The income limit for singles would be $71,700, and $141,700 for joint filers.
Republicans control Michigan’s House by six members, and Democrats control the Senate by just one member. Both bills are now in the Senate Finance Committee. The legislative session is scheduled to end on December 31.
