Bill
HB 4801
Provides a full property tax exemption for owner-occupied homes where a household member operates a licensed in-home child care business, starting 2026.
Status
- House Bill No. 4801, introduced March 13, 2025 by Rep. Greg VanWoerkom. Electronically reproduced August 26, 2025 and referred to the House Committee on Finance. Committee work occurred in April–May 2025 (reported favorably as substituted). Companion bill: SB 2666.
- Would amend the General Property Tax Act (1893 PA 206; MCL 211.1–211.155) by adding new section 7yy.
Purpose / Intent
- To provide a property tax exemption for owner‑occupied homes in which a household member operates a licensed in‑home child care business (family or group child care home), thereby reducing property tax burdens on residential child day care providers.
Key provisions
- New exemption (Sec. 7yy):
- For taxes levied after December 31, 2025, "qualified residential child day care property" is exempt from the collection of taxes under the General Property Tax Act.
- To claim the exemption, the property owner must file an application and supporting documentation with the local tax collecting unit in the time, form, and manner prescribed by the Michigan Department of Treasury.
- Definitions:
- "Family child care home" and "group child care home" are those terms as defined in section 1 of 1973 PA 116 (MCL 722.111).
- "Principal residence" is as defined in section 7dd of the General Property Tax Act.
- "Qualified residential child day care property" means property owned and occupied as the owner's principal residence where a household member operates a family or group child care home licensed under 1973 PA 116 (MCL 722.111–722.128).
Who is affected
- Directly: owners of owner‑occupied residences who operate (or have a household member operating) a licensed family or group child care home — they would be eligible for a full property tax exemption on that residence if they apply and qualify.
- Indirectly: local tax collecting units and local taxing jurisdictions (counties, cities, townships, school districts) — potential reductions in property tax collections and taxable value for qualifying properties; administrative implementation duties for processing applications per Department of Treasury rules.
- Not affected: non‑owner‑occupied child care sites, commercial child care centers, or unlicensed in‑home child care providers.
Timing / implementation notes
- Effective for taxes levied after December 31, 2025 (practically affecting the 2026 tax levy cycle).
- The Department of Treasury will prescribe application timing, form, and documentation requirements; the bill does not specify application frequency or renewal procedures.
- Fiscal impact: the bill would reduce property tax revenue to the extent properties receive the exemption. The bill text contains no appropriation or reimbursement mechanism; the magnitude of revenue loss would depend on the number of qualifying homes and local tax base concentrations. Legislative fiscal notes would estimate these impacts if prepared.
Additional procedural history
- Read first time in House: April 3, 2025 (and again Aug 26, 2025 per reproduction).
- Referred to subcommittee and committee; public hearings and substitute versions were considered; reported favorably as substituted in May 2025 before referral to Finance Committee (Aug 26, 2025).
Compiled from official sources — confirm details with the bill’s official record.
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