HB 5875 Michigan House · 2025-2026 Regular Session

Economic development: downtown development authorities; exemption from real estate transfer taxes; modify to reflect repeal of the state real estate transfer tax act. Amends sec. 228a of 2018 PA 57 (MCL 125.4228a). TIE BAR WITH: HB 5880'26, HB 5874'26

This bill amends state law to update tax exemption rules for downtown development authorities in Michigan. It clarifies that these entities remain exempt from real estate transfer taxes even after the state real estate transfer tax act was repealed. The changes will only take effect if two other related bills are also enacted into law. Ultimately, the measure ensures these local economic development organizations do not face new transfer tax obligations on property instruments.

Issues: ✓ Budget & Taxes

Bill status passed both 4 of 5 stages cleared

Introduction

Apr 2026

Committee Review

Jun 2026

House Passage

May 2026

Senate Passage

Jun 2026

Governor

Introduced Apr 22, 2026 Last action Jun 2, 2026

Maddy AI version diff · 1 comparison

What changed between versions

House Introduced Bill → As Passed by the House · 6 edits · May 20, 2026

MODERATE

The bill text underwent significant formatting and structural changes, including the removal of the original introduction date and sponsor list, and the addition of blank lines. The core legislative content, including the tax exemption for authorities, the effective date, and the conditions for enactment requiring companion bills, remains substantively unchanged.

TECHNICAL

Removed the original introduction date (April 22, 2026) and the list of sponsoring representatives.

Added multiple blank lines throughout the document header and body.

Altered the layout of the title and purpose statement, moving them to a new section with different spacing.

Corrected the capitalization of 'the people of the state of michigan' from uppercase to lowercase.

Fixed a grammatical error in the main text by removing the redundant word 'is' in the phrase 'authority shall be is exempt'.

Removed the original page footer containing tracking codes and page numbers.

Floor votes · House May 20, 2026

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 2, 2026

Committee

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS

upper

Jun 2, 2026

Upper · Passed

PASSED BY HOUSE WITH IMMEDIATE EFFECT

upper

May 20, 2026

Lower · Passed

passed; given immediate effect Roll Call #159 Yeas 57 Nays 46 Excused 0 Not Voting 7

lower

May 20, 2026

Committee

referred to second reading

lower

May 20, 2026

Lower · Passed

reported with recommendation without amendment

lower

Apr 22, 2026

Committee

referred to Committee on Government Operations

lower

Apr 22, 2026

Introduced

introduced by Representative Rep. Karl Bohnak

lower

1 primary · 18 co-sponsors