State Rep. Steve Frisbie (R-Pennfield) is spearheading a plan to eliminate the state property tax and deliver relief to Michigan families who are increasingly being priced out of homeownership.

Rising home prices, coupled with increasing property tax burdens, have made Michigan less affordable in recent years. As inventory remains tight, fewer homeowners are willing to sell, in part because moving often means taking on a higher tax burden. That dynamic is contributing to a shortage of available homes and driving up costs for buyers trying to enter the market.

“Homeownership used to be a realistic goal for working families. That’s no longer the case for too many people,” Frisbie said. “We’re seeing young families struggle to buy their first home, parents unable to upgrade as their families grow, and seniors afraid to move because they know their property taxes will jump. That’s not sustainable, and it’s not right.”

Frisbie’s bill is part of a larger package of bills aimed at lowering homeownership costs. In addition to eliminating all state-collected property taxes, the plan would also eliminate the state transfer tax on home sales, saving buyers of an average Michigan home about $2,250. The legislation would also eliminate personal property taxes on business equipment like machinery, computers, and other tools, helping small businesses, manufacturers, and service providers reinvest those dollars in ways that lower prices for homeowners.

Michigan’s property tax system is made up of a patchwork of local millages, many of which are set by voters or local governments, meaning that most of a Michigander’s property tax bill isn’t determined in Lansing. Those decisions are made locally or at the ballot box. The State Education Tax, however, is different. It’s a statewide property tax included on every property tax bill in Michigan and the only piece of the property tax equation the Legislature can control.

Frisbie said repealing it is a straightforward way to lower costs for homeowners across Michigan, responding directly to what he’s hearing from residents throughout Calhoun County: people are working hard but falling behind as housing costs and taxes continue to climb.

“It’s something we can actually fix,” Frisbie said. “If we’re serious about delivering real, immediate property tax relief, this is the most direct way for us to do it.”

Ending the 6-mill tax currently levied on all property would save homeowners with a taxable value of $150,000 roughly $900 per year, while a small business property with a taxable value of $400,000 would see savings of about $2,400 annually.

“This is real money back in people’s pockets,” Frisbie said. “It can help a young couple finally afford a mortgage, allow a growing family to find a home that fits their needs, or give a senior the freedom to downsize without being penalized by higher taxes.”

Frisbie emphasized that the plan is part of a larger effort to rein in government spending and reprioritize state resources.

“I’ve said it before and I’ll keep saying it until it’s fixed: We don’t have a revenue problem in Lansing. We have a spending problem,” Frisbie said. “By cutting reckless spending elsewhere in the state budget, we can make up the difference and deliver the tax relief people have been asking for.”

Frisbie, who sent each of his kids to public school, said his support for the plan comes with a clear commitment to Michigan students.

“I have kids of my own. I would never support cutting education funding or propose eliminating state property taxes without making sure funding for our schools is replaced,” Frisbie said. “We can and should both fund our schools responsibly and stop overburdening taxpayers.”

He added that without action, the state risks continuing down a path where homeownership becomes increasingly out of reach.

“Something has to change,” Frisbie said. “We can’t keep going down this road where owning a home is only possible for the wealthy. This plan is about restoring opportunity and making sure Michigan remains a place where families can put down roots and thrive.”

House Bill 5873 will soon be referred to a committee for consideration.