Michigan House Speaker proposes eliminating state property tax

Proposal aims to make life more affordable, but could lead to major cuts in local services

Published on Feb. 26, 2026

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Michigan House Speaker Matt Hall has announced plans to overhaul the state's tax system, including a proposal to eliminate personal property taxes, the state education tax, and the real estate transfer tax. Hall says this will make life more affordable for residents, but experts warn it could lead to disruptive cuts to essential local services like schools, libraries, and public safety.

Why it matters

Property taxes are a major source of revenue for local governments in Michigan, funding crucial public services. Eliminating these taxes could have a significant impact on communities across the state, potentially leading to reductions in school budgets, library hours, and other important local programs.

The details

House Speaker Matt Hall announced plans last week to overhaul Michigan's tax system, including a proposal to eliminate personal property taxes, the state education tax, and the real estate transfer tax. To replace this lost revenue, Hall pitched a 6% sales tax on luxury services like limousines, AI, performing arts, newspaper publishing, and political ads. Experts warn that without this property tax revenue, there will likely be "big differences" in how libraries, schools, and other community services operate, potentially leading to "really all kinds of different impacts for everyone in your community."

  • House Speaker Matt Hall announced the tax overhaul plans last week.

The players

Matt Hall

The Speaker of the Michigan House of Representatives who has proposed eliminating the state's property taxes.

Tom Dillon

An attorney with Foster Swift, a law firm that specializes in state and local tax work, who warns of the potential impacts of eliminating property taxes in Michigan.

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What they’re saying

“You're hearing people when they sell their homes, their taxes go up two or three times. This is a big issue in Detroit, it's a big issue across the state.”

— Matt Hall, House Speaker (cbsnews.com)

“There's going to be probably a big difference in how libraries operate, for example. You'll see cuts to schools, you'll see really all kinds of different impacts for everyone in your community.”

— Tom Dillon, Attorney, Foster Swift (cbsnews.com)

What’s next

The proposal to eliminate Michigan's property taxes would need to be approved by the state legislature and potentially put to a public vote. The impact on local services and budgets will be a key issue to watch as the proposal moves forward.

The takeaway

Eliminating property taxes in Michigan could provide some financial relief for residents, but experts warn it would come at a significant cost to essential public services like schools, libraries, and public safety. The proposal highlights the difficult tradeoffs lawmakers face when considering major tax reforms.