Should Michigan Increase the Senior Property Tax Credit?

Updated 2026-06-24 · 1 primary source linked · All sides presented

Should Michigan Increase the Senior Property Tax Credit?

Sen. Mark Huizenga has introduced SB 244 to raise the senior homestead property tax credit from $1,600 to $2,500 per year. Fixed-income seniors are being priced out of their homes as property values rise.

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SB 244 · Passed Senate · Now in House

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Property Tax Relief for Michigan Seniors

Michigan offers several property tax relief programs for senior homeowners, but the adequacy of this relief is a growing policy concern as home values and assessments have risen sharply. Cascade Township has a significant and growing senior population, many on fixed incomes, who face rising property tax bills even as Proposal A's assessment cap limits the rate of increase.

Key programs include the Michigan Homestead Property Tax Credit (income-based circuit breaker), the Senior Citizen Exemption (a $500 credit), and Principal Residence Exemption (which reduces school operating millage). Additional tools — like a senior property tax deferral or freeze program — have been proposed in the legislature but not yet enacted statewide.

Source: Michigan Department of Treasury — Property Tax Exemptions

Existing Tax Relief Tools

Proposal A assessment cap: Since 1994, taxable value of Michigan homes cannot increase more than 5% or the rate of inflation (whichever is lower) per year. This protects long-term homeowners from rapid tax increases even when market values surge.
Homestead Property Tax Credit: Income-based credit against property taxes; available to homeowners and renters with household income under $63,000. The credit amount has not kept pace with rising home values and taxes.
Senior Citizen Exemption: A $500 flat exemption from property taxes for homeowners age 65+ who meet income requirements. Widely considered inadequate given current tax levels.
FHPS and local millages: Senior residents in Cascade Township pay school operating millage through FHPS plus township, county, and library millages. The Principal Residence Exemption reduces the school operating portion.

The Two Sides

Expand Senior Relief

Seniors on fixed incomes face genuine hardship when property taxes consume an increasing share of limited income — a tax freeze or deferral preserves housing stability
Many seniors in Cascade own homes worth $400K–$800K but live on Social Security; their paper wealth doesn't pay the tax bill
Keeping seniors in their homes reduces the need for subsidized housing and care services

Caution on Broad Exemptions

Age-based tax exemptions shift the tax burden to younger working families who also face financial pressures
Broad senior exemptions disproportionately benefit higher-income seniors who least need the relief
Property tax deferrals create hidden municipal debt; when the senior dies or sells, the deferred taxes may not be recoverable

Primary sources

📄 Senate Bill 244 — Full Text
state-law
May be unavailable

Community Deliberation

Aggregated positions from 7 contributions across linked community chats — anonymized.

yes 4 no 2 unsure 1

yes

⇧ 24

yes

⇧ 19

yes

⇧ 17

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🗨 From the Debate

These points were made in the Debatable app and surfaced here by the community.

yes

“I'm 74, widowed, on Social Security and a small pension. My property taxes went up $340 this year because of my township's new millage. My income did not go up $340. The homestead credit phases out above $63,000 in household income — that threshold hasn't been adjusted for inflation since 2012. In real terms, the credit covers a smaller share of the tax burden every year for people exactly like me. This isn't a hypothetical policy debate. It's happening to real people right now.”

Margaret F. ⇧ 24

yes

“Kevin raises the fiscal point but misses the distributional one. Michigan's property tax burden as a share of income is highest for low-income seniors — exactly the population this credit targets. The alternative is seniors selling homes they've owned for 40 years because the tax bill exceeds their monthly income. That outcome has its own costs: displaced seniors, disrupted neighborhoods, increased demand for rental assistance and Medicaid-funded long-term care. The credit is cheaper than the alternative.”

Ruth A. ⇧ 19

yes

“My husband and I have lived in our Ada Township home since 1981. We raised four kids here. The assessed value has tripled since we retired. Proposal A caps assessment increases at 5% or CPI, whichever is lower — that helps. But when you sell and rebuy, or when millages pass, or when your township reassesses commercial property and the residential share increases, the cap doesn't protect you. We're not rich because our house is worth more than we paid for it. We're just old.”

Donna S. ⇧ 17

yes

“Chris's point about means testing is worth taking seriously but the income threshold already does some of that work. The credit phases out above $63K — the lakefront property owner isn't capturing most of it if they have retirement income above that threshold. The real design gap is the inflation adjustment. If the Legislature updated the $63K threshold for inflation annually, the credit would work as intended without the fiscal expansion of changing the credit amount itself.”

Eleanor M. ⇧ 15

unsure

“Two things I want to see before I take a position: First, a distributional analysis by county — this plays very differently in Wayne vs. Leelanau. Second, a comparison with a circuit breaker approach that ties relief directly to the ratio of taxes to income rather than a flat credit. Several states use circuit breakers and they're more efficient at targeting households under genuine strain. Michigan's current structure is blunter than it needs to be.”

Paul D. ⇧ 13

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Should Michigan Increase the Senior Property Tax Credit?