Michigan House Bill HB5377

Michigan 2025-2026 Regular Session

• Introduced: 12/16/25
• Refer: 12/16/25

Caption

Property tax: exemptions; property tax exemption from certain millages levied under the revised school code if the property's owner has no children attending public schools in this state; provide for. Amends secs. 1211, 1212 & 1364 of 1976 PA 451 (MCL 380.1211 et seq.). TIE BAR WITH: HB 5376'25, HB 5378'25, HB 5379'25

Impact

The legislative changes proposed in HB 5377 would alter the financial landscape for school districts, which primarily rely on property taxes for funding. The exemption of certain properties from school operating millage could lead to a decrease in revenue for these districts, necessitating adjustments in budget allocation. School boards will need to manage any potential funding gaps created by the exemption, especially if many childless households opt for this exemption, resulting in fewer funds available for essential educational services and resources.

Summary

House Bill 5377 aims to amend the revised school code in Michigan, specifically addressing the property tax exemptions related to school operating millage. A significant aspect of this bill is the introduction of an exemption for real or personal property owned by individuals without dependents in the public school system. Beginning December 31, 2026, these property owners will be exempt from certain millages levied under the school code, potentially reducing the tax burden for childless households. The bill's provisions extend to various types of property, including agricultural and supportive housing properties.

Contention

While proponents of the bill argue that it alleviates financial stress on families who do not utilize public education services, critics express concern over its implications for school funding. Opponents believe that the exemptions could exacerbate funding disparities, particularly in districts already facing financial challenges. The debate hinges on balancing tax relief for some residents with the need to ensure adequate resources for schools, leading to varied opinions among legislators and community stakeholders.