Advocacy News – Feb. 25, 2026
What’s happening: House Speaker Matt Hall has unveiled what he calls the most significant tax restructuring proposal in state history: a roughly $5 billion annual property tax relief package – financed by extending the state’s 6% sales tax to a set of currently untaxed services.
- Hall aims to eliminate the state’s six-mill property tax levy, repeal both the personal property tax and the state real estate transfer tax and require at least $1 billion in annual utility rate rollbacks – all while keeping the overall plan revenue neutral. To offset those reductions, he proposes extending Michigan’s sales tax to a new set of currently untaxed services.
If enacted, this proposal could affect a range of Michigan industries – including tourism, recreation, professional services, publishing, and consulting. We need to hear from you + invite you to join a special March 2 member town hall too.
What would be taxed: Details are slim so far, but Hall says he wants to tax “discretionary” services and those “disproportionately utilized by higher-income individuals or visitors.” While the speaker gave an initial list of services, a broader list will likely need to be taxed to generate the estimated revenue numbers.
Among the services cited:
- Tourism-related services
- Skiing and golf services
- AI services
- Environmental consulting
- Newspaper publishing
- Environmental consulting
- Performing arts
- Marina services
- Travel agencies
- Political advertising
- Limousine services
- Country club memberships
- Private jet services
Historical context: Michigan’s last modern attempt to broadly tax services came in 2007 under former Gov. Jennifer Granholm. It ultimately was repealed within months amid significant backlash and economic disruption.
Why it matters: Michigan has fallen in multiple national economic and education rankings – from job attraction of high-tech jobs (45th) and per capita income (40th) to our unemployment rate (45th) and student performance in reading (44th). At a time when we are working to reverse that troubling trajectory, grow our state population and strengthen our state’s competitive position, policymakers should be extremely cautious about introducing new taxes like this.
Our perspective: The Michigan Chamber will carefully review the proposal and engage with members across impacted sectors to assess its potential economic implications. Property tax relief is a laudable goal – and one the Michigan Chamber supports, particularly efforts that provide broad-based relief and improve long-term tax stability.
But the mechanisms and details matter. Selectively imposing a new sales tax on segments of the service industry – particularly Michigan’s tourism and recreation economy, coupled with Michigan’s growing competitiveness challenges – raise serious questions.
Specifically:
- Several services identified are tied to Michigan’s tourism, recreation and seasonal industries – sectors that are significant driver of Michigan’s Great Lakes economy and across communities statewide and that operate in highly competitive, price-sensitive markets.
- Some listed services may need to include business-to-business activity to generate the desired revenue, raising serious concerns about tax pyramiding and indirect consumer cost increases.
- Major tax restructuring deserves careful analysis – not political rhetoric. The employers potentially affected by this proposal are not abstract special interests, they are:
- Employers providing local jobs in cities and towns across Michigan.
- Community institutions like newspapers and performing arts organizations.
- Seasonal tourism operators competing across state lines that could put Michigan at a severe competitive disadvantage.
Share your perspective: Your input is essential. If your business could be directly or indirectly affected, now is the time to speak up. Your real-world experience will shape our analysis and advocacy.
- Contact Randy Gross via email or at 517-371-7669.
- Join our special member town hall to tell us what this could mean for you.
When: Monday, March 2 | 11 – 11:30 a.m.
Where: Virtually (link provided upon registration)
What: In this 30-minute member briefing, we will:
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- Break down what we know – and what we don’t
- Examine potential economic and competitiveness impacts
- Discuss how this proposal compares to Michigan’s 2007 services tax attempt
- Answer your questions live
- Gather member feedback to guide our advocacy strategy
This is a critical session for members who want to stay informed, prepared and engaged as this discussion unfolds in Lansing.