House advances property tax package despite significant county concerns
The Michigan House this week advanced a sweeping property tax package with significant implications for county and local government revenues. The bills moved through the House Committee on Government Operations and were voted off the House floor the very same day, largely along party lines in the Republican-controlled chamber.
MAC submitted a formal opposition letter to House members outlining the long-term fiscal concerns associated with House Bills 5872 and 5878, as well as concerns with the reimbursement structure contemplated in HB 5880. Unfortunately, the committee meeting itself was posted with no agenda, no testimony was taken from stakeholders and the entire meeting lasted approximately five minutes before the bills were reported to the House floor.
Of particular concern to counties is the proposal to eliminate the “pop up” in taxable value when property transfers ownership. Under current law, taxable value resets to State Equalized Value upon sale and then becomes capped again under Proposal A limitations. The House package would eliminate that uncapping mechanism entirely beginning in 2027.
Importantly, the proposal to eliminate the pop-up tax is not tied to any revenue replacement whatsoever. This policy would not only reduce local property tax revenues immediately, but the losses would compound year after year as each new property transfer permanently carries forward a lower taxable value. Over time, this creates a growing structural erosion of the local tax base relied upon by counties and other local governments to provide services.
MAC encourages county commissioners to ask their equalization directors, administrators or finance staff how much annual revenue the uncapping process currently generates in your county. Counties should also be able to demonstrate the compounding effect of this policy change and how those trends are currently reflected in long-term budget forecasting.
MAC lobbied aggressively to educate House members regarding the impact this policy would have on counties and local services. However, proponents continue to argue that eliminating future revenue growth is “not a cut,” and therefore they do not intend to replace the revenue counties currently realize from uncapping taxable values upon transfer.
The House package does contemplate reimbursement for the elimination of the Personal Property Tax under HB 5878, though the proposed replacement revenue mechanism was not included in the package passed by the House. MAC remains deeply concerned about moving forward with significant local revenue reductions without a clearly defined, sustainable, and protected reimbursement structure.
For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.
Interplay of budget numbers and revenue sharing discussed in new Podcast 83 episode
MAC’s Stephan Currie and Deena Bosworth discuss positive news coming out of the State Capitol in the newest episode of Podcast 83.
First, a key state panel determined on May 15 that lawmakers will have slightly more money in the fiscal 2027 General Fund than was expected in January.
“We anticipated a slight decrease in the General Fund availability for fiscal year 27,” said Bosworth. “The good news is, when all the wonderful economic minds that be got together and came up with their estimate, it’s not as bad as they thought it was going to be.
“They’re anticipating about $100 million more than they did in January,” she explained.
Currie and Bosworth also discussed the interplay this year of budget negotiations with some key county priorities.
“Most of the time, there are a handful … of things that rise to the top (in budget talks), and those things are decided by … the leaders in the chambers,” Bosworth said. “I think revenue sharing may be one of those this year, because there are some bills tied to those revenue sharing numbers.
“For a recap, the House passed out statutory revenue sharing for counties with a $19.5 million increase (for FY27). The Senate, on the other hand, passed out flat revenue sharing for us, so the same amount as last year, but they tied it to our Revenue Sharing Trust Fund bills. And those bills passed out of the Senate a few weeks ago, unanimously.”
Also addressed in this episode:
- A House hearing on a housing package that would bring numerous concerns for county authority and resources.
“This is one we don’t look to as, we’re not too friendly towards this one,” Currie said. “I think first you need to put down that letter opener when you talk about this, as it’s not too friendly, it’s a little intimidating,” Bosworth replied.
- A property tax proposal with potentially ominous financial consequences for counties.
To watch the full episode, recorded on May 18, click here or on the image above.
U.S. House approves historic housing legislation backed by counties
On Wednesday, the U.S. House of Representatives passed the 21st Century ROAD to Housing Act (H.R. 6644), with broad bipartisan support.
The bill, which passed the Senate in March and was subsequently amended in the House, reflects direct feedback from counties and includes notable changes to preserve funding stability and protect communities from housing disruption.
NACo advocated strongly for changes to the original Senate-passed bill, and the House-amended version reflected several of those priorities. Key wins in the amended bill include:
- Removes the “Build Now Act” which would threaten the stability of CDBG funding
- Removes the forced sale of dedicated built-to-rent properties, protecting rental households from displacement
The bill still contains key features of previous versions of the legislation, including:
- Expands the Home Investment Partnerships (HOME) program to better capture gaps in workforce housing and housing-adjacent infrastructure
- Authorizes up to 20 percent of CDBG funds for new unit construction, providing counties an additional tool to boost supply
- Local grants for regional planning and housing strategy implementation
- Streamlined environmental reviews for modest HUD-assisted projects
This bipartisan legislation represents the most significant federal investment in housing in over a decade, providing critical support for programs such as the Home Investment Partnerships (HOME) program and CDBG. The House-amended language reflects important progress and demonstrates the value of continued county advocacy throughout the legislative process. Most importantly, it recognizes counties as a trusted partner in the fight to expand housing opportunity – incentivizing local-option reforms without micromanaging county housing strategies.
The legislation now returns to the U.S. Senate. To contact Michigan’s U.S. senators, Gary Peters and Elissa Slotkin, on this issue, click here.
For additional details on the legislation, please see here.
Help Michigan detect invasive species during summer ‘blitz’
The MiCorps AIS Detection Blitz is a statewide community science event aimed at identifying and documenting aquatic invasive species such as zebra mussels, Eurasian watermilfoil, or anything else you suspect may be invasive in Michigan’s lakes, rivers, and wetlands. Organized by the Michigan Clean Water Corps (MiCorps), this Blitz welcomes volunteers of all backgrounds, whether you’re a seasoned naturalist or a first-time observer. Between June 29 and July 12, 2026, simply snap photos of potential invasive species and upload them to the MiCorps project on the free iNaturalist app. By working together in this coordinated effort, we can track the spread of AIS, strengthen early detection strategies, and inform better management decisions. Whether you’re on the water for the July 4th holiday or just enjoying a local spot, every observation counts!
To learn more, sign up for an instructional webinar on June 9 at 11 a.m. Eastern. Register today for the webinar: “Getting Started with the MiCorps AIS Detection Blitz”.
Invasive species threaten local waters because they can outcompete native species, reduce biodiversity and harm the overall health of lakes, rivers and wetlands, Early detection is crucial as the sooner new invasions are identified, the easier it is to prevent them from spreading and causing long-term damage. By documenting possible AIS during this event, we build a clearer understanding of where aquatic invasive species are emerging or expanding across Michigan.
Steps to follow
- Get iNaturalist – download the free app for iOS or Android, or visit iNaturalist.org.
- Search for “2026 MiCorps AIS Detection Blitz” and join the project so the observations you make during the project period are included.
- Between June 29 and July 12, visit any Michigan waterbody and snap photos of plants or animals you suspect could be invasive. When uploading photos, make sure each observation has the correct date, time, location, and that you have joined the MiCorps AIS Detection Blitz project so your observations are included. You can add multiple photos to help with identification.
- Experts and fellow users on iNaturalist will help identify your finds. Watch for feedback on your observations!
MAC offices to observe Memorial Day on May 25
MAC’s Lansing offices will be closed on Monday, May 25 in observance of the Memorial Day holiday.
Normal office hours will resume at 8 a.m. on Tuesday, May 26.
“Originally called Decoration Day, from the early tradition of decorating graves with flowers, wreaths and flags, Memorial Day is a day for remembrance of those who have died in service to our country. It was first widely observed on May 30, 1868, to commemorate the sacrifices of Civil War soldiers, by proclamation of Gen. John A. Logan of the Grand Army of the Republic, an organization of former Union sailors and soldiers.” (PBS)
It is widely reported that more than 90,000 Michiganians served in the Civil War. To read extensive details about the contributions of these soldiers, and others, to the Union cause, click here.
Staff picks
- Has the United States bent the health care cost curve? (Brookings Institution)
- Delta County Opioid Task Force hosts first regional gathering (Mining Journal)
- By the Numbers: Septic Replacement Loan Program helping Michigan homeowners with the high cost of repairing or replacing failing systems (Department of Environment, Great Lakes and Energy)
- Male coyote swam 2 miles to Alcatraz Island, twice as far as biologists had expected (Associated Press)