State Education Tax Repeal

Current understanding

The State Education Tax (1993 PA 331, MCL 211.901–211.906) imposes a 6-mill state property tax that is deposited into the State School Aid Fund and constitutes a major statewide funding source for K-12 public education. SB 1039 (103rd Legislature) proposes to repeal 1993 PA 331 in its entirety, which would eliminate this property-tax-based school funding mechanism without (in the bill as introduced) specifying a replacement revenue source. The bill has been referred to committee; no fiscal analysis or replacement funding has been recorded here yet.

Evidence log

• 2026-05-20 — Property tax: state education tax; state education tax; eliminate. Repeals 1993 PA 331 (MCL 211.901 - 211.906). TIE BAR WITH: HB 5880’26: cross-connection with state-education-tax: HB 5873 is the vehicle repealing 1993 PA 331; these two pages describe the same underlying legislative action and may need consolidation. (novelty: 2)

Open questions

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