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HB 6004

Cities: financing; act regarding prohibited taxes by cities and villages; repeal. Repeals 1964 PA 243 (MCL 141.91).

2025-2026 Regular Session Introduced by Tyrone Carter and 2 co-sponsors

Allows Michigan cities/villages to impose taxes beyond ad valorem taxes if future enabling laws or local actions authorize them.

bill electronically reproduced 05/20/2026
#cities:financing #villages:financing
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WeVote Research Nonpartisan
Bill Summary · HB 6004

Overview

HB 6004 proposes repealing 1964 Public Act 243, which currently prohibits cities and villages in Michigan from imposing, levying, or collecting taxes other than ad valorem property taxes. The bill would repeal this prohibition, effectively removing the statutory limit and allowing municipalities to assess and collect taxes beyond ad valorem property taxes.

Purpose and Intent

  • To eliminate the longstanding constraint that restricted Michigan cities and villages from imposing non-ad valorem taxes.
  • To grant municipalities greater flexibility in raising revenue through alternative tax sources beyond traditional property taxes.

Key Provisions

  • Repeal of 1964 PA 243 (MCL 141.91): The act that prohibits the imposition, levy, or collection of taxes by cities and villages other than ad valorem property taxes is repealed.
  • Enactment language: The repeal is enacted as Section 1, removing the statutory prohibition from current law.

Who and What Would Be Affected

  • Affected Entities: Michigan cities and villages (municipalities) that would have new authority to impose taxes other than ad valorem property taxes, subject to any future enabling statutes, local ordinances, voter approval requirements, or constitutional limits that may apply to specific tax types.
  • Stakeholders: Municipalities seeking revenue diversification, local residents and businesses subject to potential new or expanded municipal taxes, state government in terms of broader fiscal policy.

Procedural and Timeline Considerations

  • Status: Introduced and referred to the Committee on Government Operations (as of May 20–21, 2026).
  • Next steps: Committee consideration, potential amendments, and eventual floor action in the House, followed by possible Senate consideration and any necessary gubernatorial action.
  • Effective date: Not specified in the text provided; typically, if enacted, the repeal would take effect on a date specified in the act or upon publication, subject to any transition provisions.

Potential Implications

  • Revenue Flexibility: Municipalities could explore non-ad valorem taxes (e.g., income, sales, utility, business taxes) if authorized by future legislation or local measures.
  • Tax Policy and Local Autonomy: The repeal could shift local tax policy dynamics, increasing municipal autonomy over revenue mechanisms but potentially raising concerns about tax burden distribution and consistency with state tax policy.
  • Compliance and Oversight: Any future non-ad valorem taxes would likely require new enabling statutes or local ordinances, and may involve voter approval processes, statutory caps, or constitutional constraints.

Note

  • The bill text itself is narrowly scoped to repeal the prohibition; it does not authorize any specific new taxes. The actual adoption of non-ad valorem taxes would depend on subsequent statutes, local approvals, and applicable constitutional and administrative rules.

Compiled from official sources — confirm details with the bill’s official record.

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