Executive Summary
Michigan seniors and working families are being squeezed by rising property tax bills that grow faster than income, punish home improvements, and threaten seniors living on fixed retirement incomes. Inflation has driven home values up dramatically, and the associated property tax increases are unaffordable for many Michiganders. Seniors in particular deserve a better deal.
Perry Johnson is proposing a bold, comprehensive Michigan Property Tax Reform Plan that incorporates leading reform ideas advanced in the Michigan Legislature, including proposals from Speaker Matt Hall. while going further to protect seniors.
This reform plan is built on four pillars:
- Lower and Cap School Operating Millages
- Support Amendment to the Constitution
- Expand and Simplify Property Tax Credits
- Fund Relief Through Efficiency and Spending Reform – not Higher Taxes
The Problem: Rising Assessments, Rising Bills
Michigan’s property tax system is complex, inconsistent, and increasingly unaffordable.
Although Proposal A caps taxable value increases at 5% or inflation (whichever is lower), homeowners still face:
- “Pop-up” tax increases when property transfers
- Escalating local millages
- Higher assessments driven by inflation
- Limited relief for middle-income families
- Seniors being taxed out of their homes
Michigan’s property tax burden, especially when combined with the state income tax and local millages, discourages homeownership and long-term investment.
Lower School Operating Millages for Homeowners
A key reform concept in the Legislature has been reducing or eliminating the school operating millage for primary residences.
Perry Johnson’s Plan:
- Phase out the 6-mill state education tax on owner occupied primary residences.
- Backfill school funding through:
- Budget prioritization
- Waste elimination
- Reform of economic development subsidies
- Strategic use of existing revenue growth as more people move to Michigan as a result of the elimination of the income tax.
Homeowners should not be penalized simply for owning and living in their homes.
This reform will:
- Reduce annual tax bills for homeowners
- Increase home affordability
- Strengthen communities
- Encourage population growth
Support Changing the Constitution
Perry Johnson supports changing the Constitution and Amending Proposal A that was passed in 1994.
1. Amend Proposal A
- Dramatically reduce or eliminate property taxes, especially for Seniors over 65. This would require language that would pass voter approval on the ballot in 2026 or 2028.
2. Require Millages on November Ballot
- Millages must be passed in November elections of the even numbered year for maximum voter turnout.
3. End “Backdoor” Assessment Increases
- Reform assessment appeal processes
- Increase transparency in valuation methodology
- Expand access to local tax tribunals
Property tax bills should not rise through bureaucratic maneuvering.
Fund Reform Through Efficiency - Not Tax Shifts
Perry Johnson’s background as a quality and efficiency expert informs this plan.
Property tax relief will be funded by:
- Perry Johnson 2-Cent plan that cuts 2 cents of every dollar in discretionary spending.
- Mandatory audits of every state department
- Eliminating fraud such as the billions wasted on the unemployment insurance scam
- Reform of the Michigan Economic Development Corporation (MEDC)
- Eliminating corporate welfare subsidies that do not produce measurable ROI
- Cutting duplicative bureaucracies
- Reducing non-essential administrative growth
Michigan government spending has grown faster than inflation and population. Tax relief must be paired with structural reform.
Economic Impact
This reform will:
- Increase homeownership rates
- Encourage retirees to stay in Michigan
- Attract families from high-tax states
- Boost housing market stability
- Improve affordability for first-time buyers
States like Texas, Florida, and Tennessee have seen population growth tied directly to competitive tax climates. Michigan can compete again.
Lower property taxes also reduce pressure on renters, as landlords pass property tax costs into rent prices.
Conclusion
Michigan’s property tax system needs reform that is bold, constitutional, and sustainable.
By incorporating the strongest reform ideas in the Legislature—and applying real-world efficiency principles—Perry Johnson’s Property Tax Reform Plan delivers:
- Immediate relief
- Long-term protection
- Responsible funding
- Economic growth
Michigan families deserve to Keep Their Money and Live Their Dreams – without being taxed out of their homes.
Under Perry Johnson’s leadership, property tax reform will make homeownership and renting far more affordable for seniors and working families.