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HB 6003

Property tax: other; surcharge for certain properties; provide for. Creates new act. TIE BAR WITH: HB 5996'26, HB 5997'26, HB 5998'26, HB 5999'26, HB 6000'26, HB 6001'26

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

Imposes a progressive annual surcharge on deluxe second homes (TCV ≥ $1,000,000) starting 2027, with revenues funding reimbursements to offset revenue losses and support local gove

bill electronically reproduced 05/20/2026
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WeVote Research Nonpartisan
Bill Summary · HB 6003

Overview

House Bill 6003 (Michigan, 2025-2026) proposes a new surcharge on deluxe second homes to raise revenue that would be distributed to offset revenue losses from existing property tax credits and to fund related public information and state-local reimbursements. The measure is tied to a group of related bills (HB 5996–5999, 6000–6001) and takes effect only if all those bills are enacted.

Purpose and Intent

  • Imposes an annual surcharge on deluxe second homes starting with the 2027 tax year.
  • The surcharge revenue is deposited into a dedicated Reimbursement Fund to be used for specified purposes, including mitigating revenue losses from tax credits and supporting local government and public information efforts.
  • Creates a framework for collection, administration, exemptions, refunds, penalties, and rulemaking related to the surcharge.

Key Provisions and Changes

  • Definition – Deluxe Second Home (Sec. 3):
    • Non-owner-occupied residential property with a true cash value (TCV) of $1,000,000 or more.
  • Scope and Rate (Sec. 5):
    • Applies annually to deluxe second homes beginning in 2027.
    • Rate structure (based on TCV above $1,000,000):
    • $1,000,000 ≤ TCV < $2,000,000: 2% of the amount above $1,000,000.
    • $2,000,000 ≤ TCV < $3,000,000: 3% of the amount above $1,000,000.
    • $3,000,000 ≤ TCV < $4,000,000: 4% of the amount above $1,000,000.
    • TCV $4,000,000 and above: 5% of the amount above $1,000,000.
  • Collection and Administration (Sec. 7):
    • The Department of Treasury will collect the surcharge in the same manner as the state income tax.
    • The Department administers the surcharge under this act and 1941 PA 122; if conflicts arise, this act governs.
    • The Department must publish a calculation form within 180 days of the act’s effective date.
    • Rulemaking authority granted under the Administrative Procedures Act.
  • Use of Revenues (Sec. 9 & Sec. 11):
    • All surcharge proceeds, penalties, and costs go to a Reimbursement Fund in the state treasury.
    • The Treasurer invests fund assets and credits earnings to the fund.
    • Funds do not lapse at year-end.
    • Purposes for expenditure (on appropriation) include:
    • Compensating the State School Aid Fund for qualified revenue lost.
    • After that, compensating municipalities for qualified revenue lost (with prorated payments if funds are insufficient).
    • Offsetting state revenue losses due to expanded income tax credits (Sections 520 and 522, increasing credits from $1,500 to $2,500).
    • Implementing online property tax calculator (Section 42c).
    • Compensating local tax collecting units that provide free online property tax information (Section 42b).
  • Definitions and Clarifications (Sec. 3, various):
    • Clarifies terms such as “non-owner-occupied,” “principal residence,” “true cash value,” “reimbursement fund,” and “municipality.”
  • Enacting Condition:
    • The act does not take effect unless six related bills (HB 5996–5999, 6000–6001, as listed) are enacted into law.

Who is Affected

  • Owners of deluxe second homes (non-owner-occupied properties with TCV ≥ $1,000,000).
  • State and local governments, particularly:
    • State School Aid Fund and municipalities that may experience revenue shifts.
    • Local tax collecting units (tax collection entities) that provide online property tax information.
  • Taxpayers in general may see changes to public-facing online tools and property tax information delivery due to the funding provisions.

Procedural and Timeline Aspects

  • Effective date contingent on the passage of six companion bills (HB 5996, 5997, 5998, 5999, 6000, 6001).
  • If enacted, the surcharge would commence for the 2027 tax year.
  • Department of Treasury is tasked with formulating calculation forms within 180 days after enactment.
  • Administration and rulemaking follow standard process under the Administrative Procedures Act.

Potential Impacts and Considerations

  • Revenue effects depend on how many deluxe second homes exist and how many are non-owner-occupied.
  • The progressive rate structure targets higher-valued properties, leveraging the portion of value above $1,000,000.
  • New funding flows to offset revenue losses from expanded credits, indicating a balancing mechanism between current tax policy changes and revenue collection.
  • Administrative complexity added to the Treasury and to municipalities, particularly regarding online information dissemination and streamlined revenue distribution from the Reimbursement Fund.

If you’d like, I can provide a side-by-side comparison with the related companion bills or draft a one-page explainer for constituents.

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

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