Michigan Seniors Could Live Property Tax-Free – Senate Republican Introduces SB 292

Michigan Senate Bill 292 proposes property tax exemptions for residents aged 70 and over, aiming to alleviate financial burdens. The state will reimburse local governments for lost revenue, leading to discussions about fairness and fiscal implications.

Republican Michigan state Sen. Michele Hoitenga introduced legislation (SB 292) that would exempt residents aged 70 or older from property taxes, aiming to ease financial burdens on aging homeowners.

Bill Would Exempt Seniors from Paying Property Taxes

Senate Bill 292, introduced May 13, 2025, by Sen. Michele Hoitenga (R-Manton), would amend the state’s General Property Tax Act by adding Section 7yy. The bill exempts Michigan residents age 70 or older from paying property taxes on their primary residence, effective for taxes levied after December 31, 2025.

According to Hoitenga, “People across Northern Michigan are feeling the financial burden of high taxes—especially our seniors, many of whom are on a fixed income and have worked their whole lives, only to now face losing their homes due to skyrocketing property tax increases.”

How the Senior Property Tax Exemption Would Work

To qualify for the exemption under SB 292, an individual must:

Be 70 years of age or older
Own and occupy the home as their primary residence
File a claim with the local assessor, along with documentation verifying their age and residency

Once approved, the exemption remains valid as long as the homeowner continues to own and live in the property.

The bill defines “principal residence” in line with existing law and assigns the Michigan Department of Treasury responsibility for creating the application process and documentation requirements.

State Would Reimburse Local Governments for Lost Revenue

SB 292 includes a critical fiscal component: the state would annually appropriate money from its general fund to reimburse local governments for property tax revenue lost due to the exemptions.

This clause attempts to shield school districts, townships, and other entities that rely on local property taxes from budget shortfalls. However, the exact amount of reimbursement and its sustainability over time remain open questions.

Partisan Tension and a Broader Tax-Cut Agenda

This marks Sen. Hoitenga’s second tax-related bill in 2025. Earlier this year, she introduced Senate Bill 125, which proposed eliminating the state income tax on overtime pay.

The tone of her statement hints at political pressure. “If Democrats feel the same way, they should put their money where their mouth is and support this bill,” she said, casting the proposal as a test of bipartisan commitment to seniors.

The legislation has been referred to the Senate Committee on Finance, Insurance, and Consumer Protection, where it awaits further action.

Implications for Michigan’s Aging Population

Michigan is home to over 1.5 million residents aged 65 and older, a demographic projected to grow steadily. If SB 292 becomes law, it could offer financial relief to thousands of households, particularly in fixed-income or retirement situations.

That said, experts caution that shifting the tax burden away from one group often means redistributing it elsewhere, unless offset by state revenue increases.

What Comes Next for SB 292?

The bill must clear the Senate committee before heading to the floor for a vote. If passed, it would then move to the Michigan House and potentially to Governor Whitmer’s desk. Whether bipartisan consensus will form around the bill remains to be seen.

As of now, no companion bill has been introduced in the Michigan House, and the governor’s office has not issued a formal statement on SB 292.

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