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HB 6005

Property tax: Headlee; calculation of Headlee rollback; modify. Amends sec. 34d of 1893 PA 206 (MCL 211.34d). TIE BAR WITH: HB 5996'26

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

The bill recalculates Headlee reductions by redefining additions (new construction, exemptions, replacements) to adjust local property tax levy limits more accurately.

bill electronically reproduced 05/20/2026
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Bill Summary · HB 6005

Overview

HB 6005 (Michigan, 2025-2026) seeks to amend the Headlee rollback provisions in the General Property Tax Act (1893 PA 206), specifically Section 34d, to modify how “additions” and related values are calculated for Headlee millage reductions. The bill ties its enactment to HB 5996 and would take effect 180 days after enactment, subject to approval by HB 5996.

Main purpose and intent

  • Align and recalibrate the calculation of the Headlee rollback/ millage reduction fractions used to limit local property tax levies.
  • Update the definitions and treatment of “additions” (value increases that boost taxable value) and “losses” (value decreases) for taxes levied after 1994.
  • Ensure the calculation framework for determining taxable value, millage reductions, and compounded reduction fractions reflects current policy needs and interacts with other related bills (notably HB 5996).

Key provisions and changes

  • redefine “additions” for taxes levied after 1994 to include:
    • Omitted real and personal property and how they’re added (burden of proof on the assessing unit).
    • New construction (50% multiplier of true cash value for taxable value).
    • Previously exempt property (various methods depending on exemption type, including adjustments to reflect exemption history).
    • Replacement construction (specific rules if damage occurred, materials similarity, timing, and adjustments with inflation or 1.05 cap).
    • Environmental remediation value increases, public services-related value increases (0.50 multiplier, applicable in the year following availability).
  • enumerates exclusions from “additions” (e.g., platting/splits/changes in zoning, with certain exceptions for transfer of ownership after 2026).
  • clarifies definitions for “assessed valuation,” “financial officer,” “general price level,” “current year,” and “inflation rate.”
  • outlines annual procedural steps for calculating tentative taxable values, additions/losses, and millage reduction fractions, including:
    • May: township/city assessing officers tabulate tentative values; revisions by the county equalization director as needed.
    • June: counties deliver computed values; treasurers certify prior and current-year values, additions, losses, and millage reduction fractions.
    • October/November: final steps for tax rate computations, certified rates, and potential accelerated summer levies subject to constitutional constraints.
  • expands rules for calculating and applying the millage reduction fraction, including:
    • Separate treatment for different classes of ad valorem taxes and for voter-approved millages.
    • Limits that the compounded millage reduction fraction cannot exceed 1.
    • How reductions apply to maximum rates and to specific purposes (charter vs. state law millages).
  • provides procedures for correcting errors post-levy and for recalculations if equalization changes taxable values.
  • specifies finite timelines and rounding rules (fractions rounded to four decimals; inflation rate to three decimals).

Who/what is affected

  • Local units of government in Michigan (townships and cities) that levy ad valorem property taxes.
  • Assessing officers, county equalization directors, county treasurers, and financial officers within local governments.
  • Taxpayers with properties affected by new construction, replacements, environmental remediation, previously exempt properties, or changes in public services.
  • Agencies involved in data sharing (e.g., intermediate school district and community college administration upon request) for computation transparency.

Procedural and timeline aspects

  • Effective date: 180 days after enactment.
  • Interplay with HB 5996: HB 6005 enacting only if HB 5996 is enacted.
  • Annual cycle: specific May through June processes for tentative values, additions/losses, and millage reduction fractions; June certification; October/November finalization and potential tax rate levies.
  • Adjustments for changes in equalization or post-levy appeals may trigger recalculation and adjustments to tax revenue in subsequent levies.

Potential impact

  • Changes to how additions and losses are calculated could alter the size of Headlee reductions, thereby influencing the maximum allowable property tax levies for local governments.
  • Providing clearer burden of proof for omitted properties and more explicit treatment of new construction, replacements, and environmental remediation could affect taxable values and levy limits.
  • The bill emphasizes procedural clarity and consistency across counties, potentially affecting timing and accuracy of property tax billing.

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

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