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HB 4374

Property tax: exemptions; exemption from state education tax for certain residential property and certain agricultural property; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 9q. TIE BAR WITH: HB 4373'25

2025-2026 Regular Session Introduced by Steve Carra and 4 co-sponsors

Michigan bill exempts designated residential and agricultural properties from state education property taxes, potentially reducing school funding unless HB 4373 provides offsetting revenue.

bill electronically reproduced 04/22/2025
#propertytax:exemptions #propertytax:stateeducationtax
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Bill Summary · HB 4374

Legislative bill overview

HB 4374 proposes to amend Michigan's property tax code by adding a new exemption (Section 9q) from state education property taxes for certain residential and agricultural properties. The bill is tied to companion legislation HB 4373, suggesting the exemptions may be contingent on or coordinated with that measure. Specific details on which properties qualify or the exemption's scope are not provided in this legislative summary.

Why is this important

Property tax exemptions directly affect state education funding, which relies heavily on these revenue sources in Michigan. Expanding exemptions would reduce education tax revenue unless offset by other funding mechanisms, potentially impacting school district budgets and state education spending. Property owners in eligible categories could see meaningful tax reductions, while the fiscal impact on public schools depends on the exemption's breadth and any compensatory provisions in HB 4373.

Potential points of contention

  • Education funding impact: Reducing state education property tax revenue without replacement funding could strain school budgets, creating pressure for alternative revenue sources or spending cuts
  • Equity concerns: Exempting certain residential or agricultural properties raises questions about fairness to non-exempt property owners and whether exemptions primarily benefit wealthy landowners
  • Scope uncertainty: The bill's reference to "certain" properties suggests selective eligibility criteria, which could be contentious depending on who qualifies and perceived fairness of those distinctions

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

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