Advocacy News – April 23, 2026
What’s happening: House Republicans introduced legislation advancing the Speaker’s property tax reform plan – paired with a new tax on services.
Why it matters: House Bills 5872-80 would make sweeping changes to Michigan’s tax structure:
- Eliminate the state’s six-mill property tax
- Repeal the personal property tax and real estate transfer tax
- Require at least $1 billion in annual utility rate rollbacks
- To offset costs and keep the “revenue neutral”: impose a new 6% tax on services
Of note: Earlier signals and comments from the Speaker suggested a limited service tax that excluded business-to-business activity.
- However, the introduced legislation applies broadly to all services – with no defined limits or exclusions, including on B2B services.
Historical context: Michigan attempted a similar broad service tax in 2007 under former Gov. Jennifer Granholm. It was repealed within 17 hours due to widespread economic concerns.
What we’re saying: The MI Chamber supports efforts to modernize and improve the property tax system. However, shifting the burden to a broad tax on services raises significant concerns for employers and our state’s overall competitiveness.
- Michigan’s state budget has grown more than 40% – over $30 billion – in the past eight years. A better approach is fiscal discipline and spending prioritization, not expanding the tax base.
What’s next: We’ll closely evaluate the full proposed package and consult with members to assess real-world impact. Expect continued debate and dialogue – and potential revisions, particularly around the scope of the service tax.
Bottom line: Property tax relief is an important and worthy goal. But how it’s achieved matters. A broad new tax on services risks creating new cost pressures across Michigan’s economy.
Tell us your thoughts: We need to hear your Qs and feedback; please contact Randy Gross.