Legislative Analysis
Phone: (517) 373-8080
EXEMPTING ELECTRIC VEHICLE CHARGING STATIONS http://www.house.mi.gov/hfa
House Bill 4708 as introduced Analysis available at
Sponsor: Rep. Alabas Farhat http://www.legislature.mi.gov
Committee: Tax Policy
Complete to 3-5-24
SUMMARY:
House Bill 4708 would amend the General Property Tax Act to exempt qualified charging
stations from property taxes that are levied after December 31, 2023. Under the bill, local
assessors would be required to exclude any increase in the true cash value of a property that
results from the installation, replacement, or repair of one or more qualified charging stations.
However, any relevant increase in value would need to be indicated on the assessment roll.
Qualified charging station would mean a level 2 charging station or a DCFC
charging station.
Level 2 charging station would mean an electric vehicle charging station that offers
charging through 240-volt electrical service in residential applications or 208-volt
electrical service in nonresidential applications.
DCFC charging station would mean an electric vehicle charging station that provides
direct current fast charging.
MCL 211.27 and 211.34d and proposed MCL 211.7yy
FISCAL IMPACT:
Generally, the bills would reduce revenue for state and local governments by an unknown
amount that would vary from unit to unit. The overall net impact would depend on assumptions
related to how many of the new electric vehicle (EV) chargers would not have been installed
but for the property tax exemption. This analysis assumes that over time most of the EV
chargers would be built with or without the property tax exemption as additional EVs are
adopted. However, it is possible that the exemption could accelerate the installation of EV
chargers. Due to the relatively low number of EV chargers statewide, the immediate revenue
loss is not expected to be significant—likely no more than $1.0 million statewide. Estimating
an overall annual cost in the longer term is difficult because it is not known how widely the
exemption would be utilized in any given year, but the revenue loss will continue to grow
significantly as demand for EVs and the number of EV charging stations grows. In addition,
property taxes are very location-dependent, so the assumed revenue loss would vary by
location.
Under current law, residential real and personal property is exempt from the 18 non-homestead
mills but subject to the six-mill state education tax (SET), which is earmarked to the school aid
fund. Commercial personal property is exempt from 12 of the 18 non-homestead mills and,
House Fiscal Agency Page 1 of 2
 like residential personal property, is subject to the SET. Commercial real property is subject to
the 18 non-homestead mills. In addition, both forms of real and personal property would be
subject to any other local property taxes. Therefore, the exemption of EV chargers from real
and personal property taxes will reduce revenues from local and state (School Aid Fund)
millages. Once the property was sold, the increase in true cash value that is the result of
installing, replacing, or repairing an EV charger could be factored into the assessment.
Legislative Analyst: Alex Stegbauer
Fiscal Analyst: Ben Gielczyk
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 4708 as introduced Page 2 of 2


Statutes affected:
House Introduced Bill: 211.27, 211.34