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, associate state director for government affairs with AARP Michigan, said these proposals would help older Michiganders in particular, 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,” said Lachowski, “and then property increase, tax increases can have a major impact then, on an older adult’s household budget.”
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.
Critics have said efforts like these would put a strain on Michigan’s budget and possibly increase home prices by upping demand.
Lacowski cited 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 added that 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,” said Lachowski, “have come together to identify a problem, identify a solution, and are going to push for it for passage.”
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.
Lachowski said the bills have gotten a strong response from AARP’s 1.2 million members in Michigan. He said he believes they have enough support to reach the governor’s desk, and urges lawmakers to make that happen.
“If they want to bring financial relief to Michiganders all across our beautiful state through the homestead property tax credit,” said Lachowski, “there is a way we can reach that.”
