Budget & Taxes

in committee · Michigan · House May 21, 2026

HB 6004: Cities: financing; act regarding prohibited taxes by cities and villages; repeal. Repeals 1964 PA 243 (MCL 141.91).

This bill seeks to repeal a 1964 law that prevented cities and villages in Michigan from imposing taxes other than standard property taxes. By removing this restriction, the legislation would allow local municipalities to explore alternative revenue sources beyond ad valorem property taxes. The change directly affects city and village governments, granting them the legal authority to levy different types of taxes if they choose to do so.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill removes restrictions on local taxes, enabling cities to generate alternative revenue and strengthen municipal budgets.90% confidence

Sub-Topics Property Tax Tags Local Government

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in committee · Michigan · House May 21, 2026

HB 6003: Property tax: other; surcharge for certain properties; provide for. Creates new act. TIE BAR WITH: HB 5996'26, HB 5997'26, HB 5998'26, HB 5999'26, HB 6000'26, HB 6001'26

This bill creates a new annual surcharge on high-value second homes in Michigan that are not the owner's primary residence and have a true cash value of at least $1 million. The surcharge rates range from 2% to 5% depending on the property's value, with the Department of Treasury responsible for collecting and administering the fees. All money collected from the surcharge will be placed in a special fund to reimburse schools and local governments for revenue lost due to recent property tax exemptions and other tax credits.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill imposes a surcharge on high-value second homes to reimburse schools and local governments, closing a loophole and increasing revenue for public services.95% confidence ✓ HousingSupports HousingBill imposes surcharge on high-value second homes to fund school and local government revenue, indirectly supporting affordable housing by reducing pressure on primary residence markets.85% confidence

Sub-Topics Fees & Licensing Property Tax Property Taxes

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in committee · Michigan · House Apr 21, 2026

HB 5798: Individual income tax: credit; community development tax credit; create. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 678. TIE BAR WITH: HB 5799'26, HB 5809'26

This bill creates a new state tax credit program designed to encourage private investment in community development projects across Michigan. It allows qualified taxpayers to claim a credit equal to 25% of their eligible investment, increasing to 50% for projects involving historic rehabilitation, rural development, or areas with low-income populations. To receive the credit, applicants must demonstrate local support and prove that the project would not happen without the financial incentive, while the state fund reviews applications based on criteria such as economic soundness and the potential to revitalize blighted or vacant properties. The legislation sets annual spending limits for the program, requires projects to be completed within three years, and mandates that at least 20% of the credits go to rural or small-scale initiatives.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax credit program to encourage private investment in community development, aligning with economic development and fiscal incentives.85% confidence ✓ HousingSupports HousingBill creates tax credits to encourage private investment in community development, including low-income areas, thereby funding housing projects.85% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Community Development Property Development Tags Economic Development

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in committee · Michigan · House Apr 23, 2026

HJR T: Property tax: assessments; uncapping of taxable value for certain transfers of property owned and used as a principal residence; eliminate. Amends sec. 3, art. IX of the state constitution. TIE BAR WITH: HJR T'26

This bill proposes an amendment to the Michigan state constitution to permanently extend a property tax relief measure for homeowners who sell their primary residences. Currently, selling a home triggers a full reassessment of its value, which often leads to a significant spike in property taxes for the new owner; this change would allow the new owner to keep the lower taxable value established under the existing cap rules. The relief applies only to homes that are continuously owned and used as a principal residence, meaning the tax advantage ends if the property is sold for investment purposes or converted to a non-residential use. By removing the automatic reset of taxable value upon transfer, the bill aims to reduce the financial burden on families moving between primary homes.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax relief for homeowners, reducing tax burdens and protecting fiscal stability for residents.90% confidence ✓ HousingSupports HousingBill protects homeowners by preventing property tax spikes upon sale, ensuring housing affordability and stability.90% confidence

Sub-Topics Property Tax Property Taxes

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in committee · Michigan · House May 20, 2026

HB 5991: Corporate income tax: credits; film incentive credit; restore. Amends secs. 701, 703 & 843 of 1967 PA 281 (MCL 206.701 et seq.) & adds secs. 285 & 678. TIE BAR WITH: HB 5992'26

HB 5991 amends Michigan's corporate income tax law to restore and clarify the state's film incentive credit program. The bill defines specific terms related to film production, such as qualified productions, accredited production certificates, and digital interactive media, to establish clear rules for eligibility. It requires applicants to provide detailed economic impact data, including job creation statistics and expenditure breakdowns, to receive tax credits. This legislation directly affects film and digital media companies operating in Michigan that wish to claim financial incentives for local production activities.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill restores and clarifies film incentive tax credits, promoting economic development and job creation, which aligns with advancing state fiscal goals.85% confidence

Sub-Topics Business Taxes Government Spending Tax Incentives Tags Economic Development

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in committee · Michigan · Senate Jun 2, 2026

SB 987: Use tax: collections; collection of use tax on utility bills; prohibit. Amends sec. 4n of 1937 PA 94 (MCL 205.94n).

Senate Bill 987 amends Michigan's use tax law to maintain the exemption of electricity, natural gas, and home heating fuels from the additional 2% use tax for residential use. This change ensures that households continue to pay only the standard sales tax rate on these essential utilities rather than the higher rate. The bill directly affects Michigan residents by preserving the current tax treatment of residential energy consumption. Introduced by Senator Jonathan Lindsey on May 20, 2026, the legislation is currently under review by the Committee on Government Operations.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill maintains exemption of essential utilities from additional use tax, providing tax relief to households and preserving lower tax rates for residential energy consumption.90% confidence ✓ EnergySupports EnergyBill protects residential energy consumers by maintaining exemptions from higher use taxes on essential utilities like electricity and gas.90% confidence

Sub-Topics Sales Tax Oil & Gas

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in committee · Michigan · Senate May 21, 2026

SB 998: Use tax: collections; credit for trade-in vehicles; modify. Amends sec. 2 of 1937 PA 94 (MCL 205.92). TIE BAR WITH: SB 0997'26

Senate Bill 998 modifies Michigan's use tax law to clarify how credit for trade-in vehicles is calculated when determining the taxable amount of a purchase. The bill updates the definition of 'purchase price' to ensure that the value of a trade-in vehicle used as part payment is properly excluded from the tax base, aligning the rules with existing provisions for watercraft. This change directly affects vehicle dealers and consumers who trade in their current vehicles to buy new ones, ensuring the tax is applied only to the net cost rather than the full purchase price.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill clarifies use tax calculations to exclude trade-in values, preventing double taxation and ensuring consumers pay tax only on the net purchase price, which aligns with fiscal fairness.85% confidence

Sub-Topics Sales Tax

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in committee · Michigan · House Apr 15, 2026

HB 5790: Local government: financing; requirements for enterprise data centers; modify. Amends sec. 4ee of 1933 PA 167 (MCL 205.54ee).

This bill modifies Michigan's sales tax laws to provide tax exemptions for equipment used in enterprise data centers, which are facilities that meet specific size and job creation criteria. To qualify for these exemptions, operators must receive a certificate from the Michigan Strategic Fund and submit annual reports detailing employment, investment, and compliance with green building standards. The legislation establishes a formal application process where the fund reviews requests within 120 days and sets a maximum six-year timeline for facilities to meet their operational requirements. Additionally, the bill mandates that the fund report job numbers to state leadership by April 1, 2026, to ensure the program continues to generate the intended economic benefits.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax exemptions for enterprise data centers, promoting economic development and job creation, which aligns with fiscal management goals.85% confidence ✓ TechnologySupports TechnologyBill provides tax exemptions for enterprise data center equipment and establishes criteria to promote investment and job creation in technology infrastructure.85% confidence

Sub-Topics Sales Tax

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in committee · Michigan · House Apr 23, 2026

HB 5866: Taxation: other; HOPE zone exemption; provide for. Amends sec. 28 of 1941 PA 122 (MCL 205.28). TIE BAR WITH: HB 5852'26

This bill amends Michigan's tax collection laws to clarify how the state treasurer can request information from other government agencies and to limit the ability of tax officials to reduce outstanding tax debts. It specifically prohibits the state from compromising or reducing the principal amount of taxes owed, though it still allows for the negotiation of interest and penalties. The legislation also outlines strict rules regarding when tax officials can share taxpayer data with other departments or outside entities, including specific exceptions for HOPE zone programs. By tightening these confidentiality and collection procedures, the bill aims to standardize how the state enforces tax obligations and manages sensitive financial records.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill strengthens tax collection integrity by preventing unauthorized debt reductions, ensuring full principal recovery while allowing interest negotiation.85% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Michigan · House May 12, 2026

HB 5925: Corporate income tax: deductions; federal deduction for certain outsourcing expenses; add back. Amends sec. 623 of 1967 PA 281 (MCL 206.623).

HB 5925 amends Michigan's corporate income tax law to require companies to add back certain expenses related to outsourcing and relocating business operations out of the state. Specifically, the bill mandates that businesses must include specified outsourcing expenses in their taxable income if those costs were incurred to eliminate a trade or business located in Michigan or to relocate a business that was previously in the state to a new location outside of it. The legislation defines these eligible expenses as costs associated with ending or moving a business, such as permit fees, lease brokerage fees, and equipment installation costs. This change directly affects corporations with business activity in Michigan that have undertaken outsourcing or relocation activities, requiring them to pay additional state taxes on these specific expenditures.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes a tax loophole by requiring businesses to add back outsourcing expenses, increasing state revenue and promoting fiscal responsibility.90% confidence

Sub-Topics Business Taxes Income Tax

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