Hall Talks Property Tax Plan; Says ‘No’ To All Tax Increases; Weighs In On Detroit Officers, DOJ Probe

Article courtesy of MIRS for SBAM’s Lansing Watchdog newsletter

House Speaker Matt Hall (R-Richland Township) said Thursday he wants to cut the state’s 6 mills on property taxes through a yet-to-be-defined revenue-neutral plan that would save the average property owner around $900 a year.

Hall said his plan would include requiring the utilities to lower their rates by a combined $1 billion because “you can’t take away the cost, push them toward investment, and then not see a major reduction in our utility bills.”

In all, the Speaker wants to eliminate the state education tax on property, pop-up and real estate transfer taxes, which he estimates would cut $4 billion in revenue.

When pressed on more details on how he plans to make up the lost revenue, Hall said that it was because he didn’t want to give the journalists “too much at once.”

“You’re busy people, and you might not get it,” he told the press. “I’m not going to pick on you. I have a plan. I’m not going to get into it today, but it’ll be lower taxes, we’re going to replace all the funding. It’s revenue-neutral for schools and for local governments.”

Consumers spokesperson Katie Carey said in response to Thursday’s comments, “We support efforts to stop overtaxing Michiganders on grid investments. Every dollar of personal property taxes paid by Consumers Energy is directly paid by customers dollar for dollar. Our personal property tax liability has more than doubled since 2017, and this proposal would provide meaningful reductions in utility bills for Michiganders.”

In her Fiscal Year (FY) 2027 budget presentation, the Governor proposed a property tax cut for some seniors, for which Hall gave her credit in Thursday’s press conference.

In response, Michigan Alliance for Student Opportunity Executive Director Peter Spadafore said in a statement signed by the Michigan Association of School Administrators, the Michigan Association of Intermediate School Administrators and the Michigan Association of School Boards that the Governor and the Speaker’s proposals “further erode tax dollars available to support essential services would blow massive holes in Michigan’s budget.

“Our students would pay the price. Schools are not a piggy bank to be raided for political tax cut talking points this fall,” he said.

He started the press conference claiming that the state budget is at $81.5 billion, and that it’s smaller than the year before. He claimed that if you take out The Great Depression and major wars, this is the first year when the budget was smaller than the year before.

He argued that the framework negotiated last fall will require additional reductions in future years, including in 2028, “when I’m reelected speaker.”

He framed the upcoming budget cycle as a choice between cutting spending or raising taxes, making a firm stance that House Republicans will not support any of the Governor’s proposed tax increases. That includes changes to nicotine, vapes and internet gaming.

Referencing Illinois’ 25-cent per-bet tax model, Hall said similar policies have coincided with declining gaming revenue there and added, “I don’t think it will accomplish what (the Governor) thinks it will.”

He also addressed reports that two Detroit police officers were fired after assisting federal immigration authorities, stating that terminating the officers would be “completely unacceptable” and warned that such action could affect the relationship he is attempting to build with Detroit’s new leadership.

He further noted the House adopted a resolution barring certain “pork spending” from being spent in sanctuary jurisdictions and said lawmakers would “have to look at this very carefully” if the officers are fired.

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