Bill > HB4373

This bill amends the State Education Tax Act to modify property tax exemptions. Specifically, the bill updates definitions related to the General Property Tax Act and introduces new exemptions from the state education tax for certain types of property starting December 31, 2025. The new exemptions include all residential real property and certain agricultural properties where the owner is actively involved in agricultural use and occupies a single-family dwelling on the land. The bill maintains the existing 6-mill state education tax rate (with a historical exception for 2003 when it was 5 mills) but expands property tax exemptions. Notably, the bill's implementation is contingent upon the passage of a related House Bill, indicating this is part of a broader legislative package. The changes aim to provide tax relief for residential property owners and agricultural landowners by removing their properties from the state education tax assessment, which is typically used to fund local school districts.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4373