A proposal to completely eliminate property taxes in Michigan did not make it to the ballot this year. There may have been some who were hopeful ahead of the November election, but to put it simply, this winter's tax bills will come out as usual.

This attempt was led by a group called AxMITax. Since it was a constitutional amendment, 446,198 valid signatures were needed, but the group's representative, Carla Wagner, stated at the end of May that they fell short.

The group's own count was 419,426 signatures. This means they were 26,772 signatures short of the threshold, and it's worth noting that this number was announced by the group and has not been independently verified.

In fact, this group also attempted to gather signatures for the same goal in 2024 but failed. They have now fallen short at the threshold two times in a row.

Representative Wagner has stated that they will try again next time. So, it would be premature to consider this issue completely resolved.

There has also been movement in the state legislature. On May 20, the state House passed a Republican-led property tax reduction package, HB 5872 through 5879.

However, this does not mean a complete elimination of property taxes. The key points include the elimination of the 6-mill state education tax, the so-called pop-up tax that increases the taxable value when buying or selling a home, and the elimination of the real estate transfer tax, while local property taxes remain unchanged.

According to an analysis by the House Fiscal Agency, this tax reduction could cut state and local government revenues by up to $5.5 billion next year. This has led to criticism regarding the lack of a plan to fill the revenue gap.

In the Democrat-controlled Senate, many believe the chances of passage are low. Therefore, rather than expecting immediate changes to your tax bill, it is more realistic to take advantage of what you can within the current system.

So, what can homeowners actually do? I will outline the options in the order I frequently check while reviewing data.

The first is the Principal Residence Exemption (PRE). If you live in your home, you can be exempt from up to 18 mills of the school operating tax, and if this exemption is missing, the tax difference can be quite significant.

The application form is Form 2368, and the deadlines are June 1 and November 1. If you submit by June 1, it will be reflected in the summer tax bill, and if you submit by November 1, it will be reflected in the winter tax bill.

If you moved in this year and haven't submitted yet, November 1 is just around the corner. There are about ten days left from the date of this post, so I recommend checking with your city or township assessor's office this week.

The second is the taxable value cap. Since Proposal A in 1994, homes owned by the same owner can only increase in taxable value by the lower of the inflation rate or 5%.

The inflation multiplier for 2026 has been set at 1.027. If you haven't changed homes, this means the taxable value increase should normally be around 2.7% this year.

If the taxable value on your bill has increased more than that, it might be worth checking if there were any reasons such as renovations or ownership transfers recorded. Mistakes can happen more often than you might think.

On the other hand, those who have recently purchased a home have a different situation. When a sale occurs, the cap is lifted, and the taxable value is reset to half of the market value (SEV).

This is why it is common to see significant tax differences between long-time neighbors with similar-sized homes in the same neighborhood. This is why you shouldn't just look at the previous owner's tax when evaluating a property.

The third is filing an appeal. If you disagree with the residential assessment, you must first go to the Board of Review in March or submit a written appeal to proceed to the next step.

If that doesn't resolve the issue, you can appeal again to the Michigan Tax Tribunal by July 31. If you miss March, the options for that year are almost closed off.

What you should prepare now are recent transaction records of similar homes nearby. In Grand Rapids, the market trends can vary significantly depending on the school district and block, so you should choose comparison properties that are as close as possible.

The fourth is the Homestead Property Tax Credit. You apply for this when filing your state income tax using MI-1040CR, and according to the Treasury Department, the maximum credit for the 2025 tax year was $1,900.

To qualify, your household income must be below $71,500, and the taxable value of your home must be below $165,400. The credit gradually decreases if your income exceeds $62,500.

According to the Treasury Department, nearly 1.1 million people received this credit during the 2025 filing season. Surprisingly, many households qualify but are unaware of this benefit.

It's also important to let tenants know that they can apply for a portion of their rent as property tax, as many people mistakenly think this is only for homeowners.

In summary, the elimination proposal has failed, and the House tax reduction plan still has a long way to go. In the meantime, what you can do is check your PRE, monitor the taxable value increase, prepare for the March appeal, and apply for credits.

Personally, I believe that properly utilizing the current caps and exemptions is a much more certain way to save on taxes than hoping for a complete elimination of property taxes. It is still too early to rely on promises without answers about where to fill the budget gaps for schools and roads.

Deadlines and amounts change slightly each year, so please check with your local city or township assessor's office or the Michigan Department of Treasury website for the latest standards.