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SB 1039

Property tax: state education tax; state education tax; repeal. Repeals 1993 PA 331 (MCL 211.901 - 211.906).

2025-2026 Regular Session Introduced by Aric Nesbitt

SB 1039 repeals the State Education Tax Act, removing the statutory framework for the state education tax and its funding mechanism.

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS
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Bill Summary · SB 1039

Summary of SB 1039 (Session 2025-2026) – Michigan

Purpose and intent

  • Repeals the State Education Tax Act, enacted as 1993 Public Act 331 (MCL 211.901 - 211.906).
  • Introduced by Senator Aric Nesbitt and referred to the Senate Committee on Government Operations on June 11, 2026.
  • The bill’s central aim is to eliminate the state education tax framework established under PA 331.

Key provisions and changes

  • Enacts a repeal of the State Education Tax Act, specifically:
    • Repeals the enacted statute codified at MCL 211.901 through 211.906.
    • Effects: removes the statutory authority and framework for the state education tax that was previously used to levy education-related funding via property taxes.
  • No new provisions or alternative funding mechanisms are introduced within the text of SB 1039 itself; the bill focuses solely on repeal.

Affected entities and stakeholders

  • Taxpayers and property owners in Michigan who would have been subject to the state education tax under PA 331.
  • Local government units and school districts that may have previously relied on revenue streams generated under the state education tax framework.
  • State government and departments involved in taxation and school finance and any agencies tasked with administering or responding to the repeal.

Procedural and timeline aspects

  • Status: Introduced in the Senate on June 11, 2026.
  • Action history indicates referral to the Committee on Government Operations for consideration.
  • The bill contains a straightforward repeal; there are no specified phase-in periods or transitional provisions documented in the text provided.

Additional notes

  • The summary reflects only the content available in the introduced bill text. If enacted, Michigan would remove the statutory basis for the state education tax, potentially prompting subsequent actions to address funding for education that had been supported by that tax, though no alternative funding plan is outlined in SB 1039 itself.
  • As with any repeal, follow-up measures (if any) would determine how education funding is rather sourced post-repeal, including potential changes to state budgets, school funding formulas, or property tax interactions.

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

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