Michigan House Bill HB5398

Michigan 2025-2026 Regular Session

• Introduced: 12/17/25
• Refer: 12/17/25

Caption

Property tax: exemptions; general property tax act; reflect repeal of data center tax exemptions. Amends sec. 7ff of 1893 PA 206 (MCL 211.7ff). TIE BAR WITH: HB 5396'25, HB 5397'25

Impact

This legislation has significant implications for local governments and property owners within renaissance zones. It outlines specific exemptions for residential rental properties and personal properties that meet certain conditions, reinforcing compliance with local zoning and building laws. Furthermore, properties associated with casinos within renaissance zones remain subjected to these taxes, which could lead to increased tax revenue for local governments. The interaction of this bill with previously established data center tax exemptions marks a notable shift in taxation policy for technology-based businesses operating in the area.

Summary

House Bill 5398 proposes to amend the General Property Tax Act to address tax exemptions concerning property located in renaissance zones in Michigan. Specifically, it aims to reflect the repeal of certain data center tax exemptions while maintaining existing exemptions for real and personal property in such zones as stipulated by the Michigan renaissance zone act. The bill outlines the boundaries of what properties can be exempt from the general collection of taxes while also preserving local tax collection rights for special assessments and certain ad valorem property taxes.

Contention

HB 5398 has sparked discussions regarding the balance between incentivizing business development in renaissance zones and ensuring adequate tax revenue for local governments. Critics may raise concerns about the fairness of repealing data center tax exemptions while continuing to offer substantial exemptions for other properties. Moreover, there is an ongoing debate about the role of local governments in managing property taxes and how state-level legislation can inadvertently undermine local authority to meet their unique needs.