Legislative Analysis
Phone: (517) 373-8080
PROHIBIT LOCAL PROPERTY TAX CAPS
http://www.house.mi.gov/hfa
House Bill 6160 as introduced Analysis available at
Sponsor: Rep. Amos O’Neal http://www.legislature.mi.gov
Committee: Tax Policy
Complete to 12-11-24
SUMMARY:
House Bill 6160 would amend the General Property Tax Act to prohibit a local governmental
unit from enacting or enforcing a local property tax cap on the gross dollar amount of revenue
levied or raised annually if the cap would require an automatic reduction on a fixed millage
rate.
If a local governmental unit had a local property tax cap in violation of the bill on the bill’s
effective date, the cap would be void and unenforceable, and the local unit would not be
required to reduce its millage rate.
Local governmental unit would mean a county, city, township, or village.
Local property tax cap would mean a fixed limitation on the gross dollar value of a
local property tax levied or raised annually, imposed by a local governmental unit on
its own taxing authority by charter, ordinance, policy, rule, or otherwise. It would not
include a limitation on a local property tax imposed by the constitution or other state
law.
Local property tax would mean an ad valorem property tax levied by a local
governmental unit and collected under the act.
Proposed MCL 211.34f
BACKGROUND:
The city of Saginaw currently has a $3.8 million cap on property tax revenue (along with a cap
at 7.5 mills) that was established in 1979. Since the city therefore cannot collect more revenue
than it did in 1979, it is forced to forgo millions in dollars in potential revenue each year. 1
FISCAL IMPACT:
House Bill 6160 would increase revenues from existing millages for any local unit that
currently enforced a local property tax cap on the gross dollar amount of revenue levied. The
bill would render any local property tax cap on the gross dollar amount of revenue levied or
raised annually that requires an automatic reduction on a fixed millage rate void and
unenforceable and would prohibit a local government from enacting a cap of this nature in the
future.
1
http://www.michiganpropertytax.com/saginaw/spicer/whatgoes.pdf
House Fiscal Agency Page 1 of 2
 The provisions of the bill would not affect constitutional Headlee Amendment limitations.
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 6160 as introduced Page 2 of 2


Statutes affected:
House Introduced Bill: 211.1, 211.155
As Passed by the House: 211.1, 211.155