State Representative Rylee Linting announced on Apr. 23 a new legislative effort aimed at reducing the cost of homeownership in southeast Michigan through property tax reforms.
The proposal, House Bill 5874, seeks to eliminate the state’s real estate transfer tax, which is charged when property changes ownership. Supporters say this measure would help make housing more affordable for buyers and sellers across the region.
Linting said the bill is part of a larger plan to reform property taxes in Michigan. The package includes eliminating the six-mill state education tax on property and creating a framework for utilities to lower rates for customers. According to Linting, these changes could result in average homeowners paying about 14 percent less in overall property taxes, freeing up money for other household expenses.
“The cost of owning a home has become incredibly expensive, especially for young families,” Linting said. “The transfer tax only adds to that cost for buyers as it can get baked into a higher listing price. It also can make people, including seniors living on fixed incomes, more reluctant to sell.” She added that rising costs have made it harder for many people to consider buying homes: “The median age of first-time homebuyers in the U.S. rose to 40 last year, and studies have shown that a growing number of people do not plan to buy a home or are unsure if they ever will. Michigan workers and families are being taxed out of the American Dream.”
Currently, Michigan’s real estate transfer tax stands at $3.75 per $500 of sale price; under Linting’s proposal, someone purchasing a $300,000 home would save $2,250. The legislation ensures that any loss in revenue from eliminating this tax will be compensated so that school funding is not affected.
Linting pointed out that state property tax revenues have increased by $6 billion since 2018 due to inflation and rising home values and said this surplus should be returned to taxpayers: “If we are serious about respecting taxpayers and making Michigan affordable, we must tackle property taxes and housing costs… These plans will provide real savings year after year for an overwhelming majority of people in Michigan.”
