{"id":73137,"date":"2026-02-25T13:28:57","date_gmt":"2026-02-25T18:28:57","guid":{"rendered":"https:\/\/bridgemi.com\/?p=73137"},"modified":"2026-02-25T13:29:04","modified_gmt":"2026-02-25T18:29:04","slug":"gop-leader-proposes-4-7b-michigan-service-tax-to-pay-for-property-tax-cuts","status":"publish","type":"post","link":"https:\/\/bridgemi.com\/michigan-government\/gop-leader-proposes-4-7b-michigan-service-tax-to-pay-for-property-tax-cuts\/","title":{"rendered":"GOP leader proposes $4.7B Michigan service tax to pay for property tax cuts"},"content":{"rendered":"\n<ul class=\"wp-block-list\">\n<li><strong>Michigan House Speaker Matt Hall, R-Richland Township, pitches 6% sales tax on luxury services, potentially generating $4.73B in revenue<\/strong><\/li>\n\n\n\n<li><strong>That money would be used to pay for a cumulative $5B tax overhaul and utility rate rollback plan Hall proposed last week<\/strong><\/li>\n\n\n\n<li><strong>It&#8217;s the first major Michigan service tax proposal since 2010 under then-Gov. Jennifer Granholm<\/strong><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<p>LANSING \u2014 Michigan House Speaker Matt Hall is pitching a 6% sales tax on luxury services as a way to pay for his <a href=\"https:\/\/bridgemi.com\/michigan-government\/matt-hall-pitches-4b-michigan-tax-overhaul-1b-energy-bill-savings\/\">recently announced plan<\/a> to cut property taxes and lower energy bills.&nbsp;<\/p>\n\n\n\n<p>Among the services Hall, R-Richland Township, is proposing to tax: Limousines, country club memberships, tourist services, skiing, golf, artificial intelligence services, performing arts, private jets, environmental consulting, newspaper publishing, marinas and political ads.<\/p>\n\n\n\n<p>Those proposed service taxes, as <a href=\"https:\/\/www.wlns.com\/capital-rundown\/michigan-house-speaker-tax-overhaul\/\">first reported by WLNS-TV<\/a> in Lansing, could generate roughly $4.73 billion in state revenue, nearly offsetting $5 billion tax overhaul he proposed earlier this month, including elimination of the State Education Tax, real estate transfer tax and remaining personal property taxes.<\/p>\n\n\n\n<p>All told, it would amount to a roughly $270 million tax cut and be \u201cthe biggest tax reform in Michigan\u2019s history,\u201d Hall told the television station.&nbsp;<\/p>\n\n\n\n<p><strong>Related:&nbsp;<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/bridgemi.com\/michigan-government\/matt-hall-pitches-4b-michigan-tax-overhaul-1b-energy-bill-savings\/\"><strong>Hall pitches $4B Michigan tax overhaul, $1B energy bill savings<\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-pitches-88b-budget-what-it-means-for-michiganders-schools\/\"><strong>Whitmer proposes $88B budget. What it means for Michigan<\/strong><\/a><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/bridgemi.com\/michigan-government\/hey-gov-whitmer-heres-what-michigan-says-is-real-state-of-the-state\/\">Hey, Whitmer: Here\u2019s what Michigan says is real State of the State<\/a>\u00a0<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Services are currently exempt from Michigan\u2019s 6% sales tax.&nbsp;<\/p>\n\n\n\n<p>Hall\u2019s proposal would not tax all services, however. Services at nail salons and barbers, landscaping, legal services, health care services, child care, veterinary care, dry cleaning and steaming services \u2014 as well as car repairs \u2014 would all be exempt from the plan, his office confirmed.&nbsp;<\/p>\n\n\n\n<p>Speaking with WLNS on Tuesday, Hall contended working families could avoid most of the new taxes. Taxes on tourism-related services, he added, would largely be paid by people from out-of-state.<\/p>\n\n\n\n<p>It&#8217;s the first major Michigan service tax proposal since former Gov. Jennifer Granholm, who twice proposed broader service taxes. She signed off on a 2007 tax plan that was repealed before it took effect and again pitched extending the state sales tax to services in 2010 as part of a larger plan to address a budget deficit and cut the Michigan Business Tax.<\/p>\n\n\n\n<p>Details of Hall\u2019s plan come less than a week after he publicly pitched <a href=\"https:\/\/bridgemi.com\/michigan-government\/matt-hall-pitches-4b-michigan-tax-overhaul-1b-energy-bill-savings\/\">a $4 billion tax overhaul plan<\/a> that would also mandate $1 billion in utility rate rollbacks \u2013 promising to hold harmless schools and local governments that rely on property taxes but not immediately proposing replacement revenue.&nbsp;<\/p>\n\n\n\n<p>As part of that larger effort, Hall said he would like to see the elimination of the 6-mill State Education Tax \u2013 which Michiganders pay on their summer property taxes \u2013 personal property taxes, real estate transfer tax and what he calls a \u201cpop-up tax\u201d incurred upon selling a home.&nbsp;<\/p>\n\n\n\n<p>Michigan began phasing out personal property taxes for many large businesses under a 2014 law. But last week Hall said he\u2019d \u201clike to go further\u201d and scrap the tax altogether, arguing it \u201cpunishes growth and investment\u201d throughout Michigan.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Utilities could save money as a result, he said, telling reporters he would not eliminate their personal property taxes \u201cwithout also mandating at least a $1 billion rollback in our energy bills.\u201d&nbsp;<\/p>\n\n\n\n<p>\u201cYou can\u2019t take away the cost, push them toward investment and then not see a major reduction in our utility bills,\u201d Hall said during a Feb. 19 press conference. \u201cI think this will lead to major savings for our residents of Michigan. We can get a more reliable grid and a more affordable energy bill.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Michigan should tax certain services to pay for property tax relief, according to Republican House Speaker Matt Hall, who is proposing what he calls the \u2018biggest tax reform in Michigan\u2019s history.\u2019<\/p>\n","protected":false},"author":233,"featured_media":73138,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","inline_featured_image":false,"apple_news_api_created_at":"2026-02-25T18:29:02Z","apple_news_api_id":"e283d29c-40af-4a71-ae75-263e22431e0e","apple_news_api_modified_at":"2026-02-25T18:29:02Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/A4oPSnECvSnGudSY-IkMeDg","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"_newspack_byline_active":false,"_newspack_byline":"","newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[2445],"tags":[],"newspack_spnsrs_tax":[],"coauthors":[2457],"class_list":["post-73137","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-michigan-government","entry"],"apple_news_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GOP leader proposes $4.7B Michigan service tax to pay for property tax cuts - Bridge Michigan<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bridgemi.com\/michigan-government\/gop-leader-proposes-4-7b-michigan-service-tax-to-pay-for-property-tax-cuts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GOP leader proposes $4.7B Michigan service tax to pay for property tax cuts - Bridge Michigan\" \/>\n<meta property=\"og:description\" content=\"Michigan should tax certain services to pay for property tax relief, according to Republican House Speaker Matt Hall, who is proposing what he calls the \u2018biggest tax reform in Michigan\u2019s history.\u2019\" \/>\n<meta property=\"og:url\" content=\"https:\/\/bridgemi.com\/michigan-government\/gop-leader-proposes-4-7b-michigan-service-tax-to-pay-for-property-tax-cuts\/\" \/>\n<meta property=\"og:site_name\" content=\"Bridge Michigan\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/BridgeMichigan\/\" \/>\n<meta property=\"article:published_time\" content=\"2026-02-25T18:28:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-25T18:29:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/bridgemi.com\/wp-content\/uploads\/2026\/02\/041425-Hall-SS.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1300\" \/>\n\t<meta property=\"og:image:height\" content=\"867\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jordyn Hermani\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@bridgemichigan\" \/>\n<meta name=\"twitter:site\" content=\"@bridgemichigan\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jordyn Hermani\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/bridgemi.com\/michigan-government\/gop-leader-proposes-4-7b-michigan-service-tax-to-pay-for-property-tax-cuts\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/bridgemi.com\/michigan-government\/gop-leader-proposes-4-7b-michigan-service-tax-to-pay-for-property-tax-cuts\/\"},\"author\":{\"name\":\"Jordyn Hermani\",\"@id\":\"https:\/\/bridgemi.com\/#\/schema\/person\/e1345693c1e664915491f95af159fa17\"},\"headline\":\"GOP leader proposes $4.7B Michigan service tax to pay for property tax cuts\",\"datePublished\":\"2026-02-25T18:28:57+00:00\",\"dateModified\":\"2026-02-25T18:29:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/bridgemi.com\/michigan-government\/gop-leader-proposes-4-7b-michigan-service-tax-to-pay-for-property-tax-cuts\/\"},\"wordCount\":610,\"publisher\":{\"@id\":\"https:\/\/bridgemi.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/bridgemi.com\/michigan-government\/gop-leader-proposes-4-7b-michigan-service-tax-to-pay-for-property-tax-cuts\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/041425-Hall-SS.jpg?fit=1300%2C867&ssl=1\",\"articleSection\":[\"Michigan Government\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/bridgemi.com\/michigan-government\/gop-leader-proposes-4-7b-michigan-service-tax-to-pay-for-property-tax-cuts\/\",\"url\":\"https:\/\/bridgemi.com\/michigan-government\/gop-leader-proposes-4-7b-michigan-service-tax-to-pay-for-property-tax-cuts\/\",\"name\":\"GOP leader proposes $4.7B Michigan service tax to pay for property tax cuts - 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Prior to joining the Capitol crew, she wrote for MLive as its statewide politics and culture reporter and with Gongwer Michigan as its state House reporter. She lives in Lansing with her husband and two cats.\u00a0When not writing, you can catch her watching hockey or horror movies \u2014 though, usually not at the same time. 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