Plan also eliminates ‘pop-up tax,’ lowers barriers to homeownership

State Rep. Ann Bollin is spearheading part of a sweeping plan to lower costs for Michigan families by cutting property taxes, reducing energy bills, and eliminating fees that make it harder to buy and sell a home.

HELP UP – the House plan to Effectively Lower Property Taxes & Utility Payments – delivers broad, long-term relief by eliminating the state property tax, lowering utility costs, and removing barriers to homeownership.

“We’re cutting the costs that hit families the hardest, from property taxes to energy bills to the hidden fees that make homeownership harder to reach,” said Bollin, R-Brighton Township. “These are meaningful, lasting changes that will make a real difference and give people some breathing room in their monthly budgets.”

Under the plan, the average homeowner would save about $900 annually through the elimination of state-collected property taxes. The plan also ensures schools are held harmless, so classrooms and students do not lose resources as a result of eliminating the state property tax.

By eliminating personal property taxes, the plan will also reduce costs for energy providers, and a required $1 billion rate rollback will ensure those savings are passed directly on to customers. This will effectively wipe out the rate increases that have driven up bills over the past three years.

In addition, the plan eliminates the real estate transfer tax on home sales, saving buyers of an average Michigan home about $2,250 and reducing upfront costs that can prevent first-time buyers, relocating workers, and seniors from finding a home that fits their needs.

Legislation Bollin is spearheading would eliminate Michigan’s “pop-up tax,” a hidden tax increase that can hit new homeowners shortly after purchasing a house.

“Right now, families can do everything right, buy a home, plan their budget, and then get hit with a massive tax increase the very next year,” Bollin said. “That’s not fair, and it’s not sustainable.”

Bollin’s legislation, House Bill 5872 and House Joint Resolution T, would ensure that a home’s taxable value does not automatically spike when it is sold. Instead, taxable value would continue to grow gradually under the existing cap, allowing homeowners to better plan for the future without the risk of sudden, dramatic increases. This approach also maintains stable and predictable funding for the essential local services communities rely on. Homeowners would still be able to realize the full value of their investment when they sell, because sale prices would continue to be determined by the free market.

“Homeownership should be a pathway to stability, not a source of financial uncertainty,” Bollin said. “By combining this reform with broader tax relief and lower costs across the board, we are making Michigan a more affordable place to live, work, and raise a family.”

In its entirety, HELP UP is comprised of House Bills 5872-5880 and HJR T.