LANSING, Mich. — Lansing residents gathered at the Capitol Tuesday to advocate for a citizen initiative that would eliminate property taxes across Michigan. This initiative would not increase the state's sales taxes.
- The AxMiTax initiative aims to completely eliminate all property taxes in Michigan.
- The proposal would increase the portion of state sales tax revenue from 10% to 13% to offset revenue losses.
- Supporters need to gather 600,000 valid signatures by September to make the 2026 ballot.
The initiative would shift funding from property taxes to other revenue sources including state income, marijuana, alcohol and tobacco taxes.
WATCH: Lansing residents push for property tax elimination in Michigan
"AxMiTax is a citizen initiative petition to totally eliminate all property taxes in the state of Michigan," said Karla Wagner, a supporter of the initiative.
The petition calls for the state to cancel commercial and residential property taxes, increase the portion of state sales tax revenue from 10 to 13%, and shift funding from state income, marijuana, alcohol and tobacco taxes to local governments.
Wagner says this would save homeowners thousands of dollars annually.
When asked how much she would save personally, Wagner responded, "Well my homestead is about $7200 to $7300 a year."
But eliminating property taxes could have significant impacts on local services. I went to city hall to learn more about these potential effects.
Lansing Mayor Andy Schor expressed concerns about the proposal's impact on city services.
"Nobody wants to pay more taxes. Everyone would want to pay less taxes but everybody expects the services that go along with those taxes," Schor said.
Mayor Schor noted that 33% of the city's budget comes from property taxes, which fund essential services like parks and first response resources.
"Cutting our budget from a quarter to a third would have a significant [impact] on the services that the citizens expect," Schor said.
Wagner acknowledges that state and local governments would need to tighten their belts but believes the change is necessary for Michigan residents.
"We can't do it anymore. It's unsustainable," Wagner said.
The organization has until the end of September to gather 600,000 valid signatures for the initiative to appear on the 2026 ballot.
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