10/07/2025

MICHIGAN - As housing prices keep going up 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 with A-A-R-P Michigan says these proposals would help older Michiganders in particular, by easing their tax burden and allowing them to stay in their homes and communities.

                    0:13  "It's difficult to absorb the rising costs that we've seen for things like food, utilities and more – 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-thousand dollars to 161-thousand-700 dollars. The income limit for singles would be 71-thousand-700 dollars, and 141-thousand-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. Lachowski cites an A-A-R-P study showing 85-percent of adults over age 45 say higher property taxes will make it harder for them to stay in their homes. He adds these bills have support across the aisle, which he says is key this year with Michigan's divided legislature.

                    0:14  "This package of bills is the perfect example of where the two parties, as different as they can be, 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 31st. Lachowski says the bills have gotten a strong response from A-A-R-P's one-point-two million members in Michigan. He believes they have enough support to reach the governor's desk, and urges lawmakers to make that happen.

                    0:09  "If they want to bring financial relief to Michiganders all across our beautiful state through the homestead property tax credit, there is a way we can reach that."