State House Speaker backing plan to reduce property taxes by taxing luxury services

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Michigan House Speaker Matt Hall is providing more details about his plan for a $5 billion property tax cut in the state.

Hall is proposing to replace those taxes with a 6% sales tax on luxury services, and he says this really will only apply to “luxury” services.

The telemarketers are going to pay for it,” Hall said. “I know the people behind the robocalls are going to pay for it. We talked about the limousines and the country club memberships and the private jets. Also, we’re going to make the collection agencies pay for it. They’re going to pay for it, and all these groups, we’re going to tax them and they’re going to pay to lower your property taxes.”

But Hall says essential services — including nail salons, barbers, landscaping, healthcare, car repairs, childcare, dry cleaning, and streaming services — would be exempt from that new tax.

Hall also is pushing for a $1 billion rollback in rate increases for Michigan utilities.