State House GOP advances $5 billion property tax cut plan

Political News & Notes is a weekly look at what is happening in Lansing and around the state.

Michigan House Republicans approved a broad package of property tax cuts Wednesday night, advancing legislation projected to reduce tax collections by billions of dollars annually while postponing action on a separate plan intended to replace some of the lost revenue.

The Republican-led House passed eight bills in the package by mostly party-line votes. Rep. Jaime Greene, R-Richmond, broke with her caucus to oppose the measures, while Rep. Karen Whitsett, D-Detroit, returned to Lansing for the first time in months to vote in favor of the legislation.

House Speaker Matt Hall, R-Richland Township, has promoted the package as major tax relief for homeowners and businesses. Supporters argued Michigan residents are increasingly burdened by rising property tax costs and deserve immediate relief, according to the Detroit News.

“This package is being sold as property tax relief, but when you read the bills, it is much more complicated than that,” Greene said in a statement after voting against the proposal. She described the plan as a “tax shift” that could create uncertainty for schools and local governments.

The legislation would eliminate several major taxes, including the six-mill State Education Tax, the state’s 0.75% real estate transfer tax and the so-called “pop-up tax,” which increases a property’s taxable value after it is sold.

Republicans also approved a plan to repeal the personal property tax, primarily affecting businesses and utilities.

According to nonpartisan House Fiscal Agency estimates, the combined measures could reduce annual tax revenue between $5.5 billion and $7.5 billion over time. Much of that funding currently supports schools and local government services.

Republicans say the revenue losses would eventually be offset through a separate 6% sales tax on select services, though details of the proposal remain unresolved. Hall said the tax could apply to luxury-oriented services such as private jet travel, limousine services and lobbying.

The package now moves to the Democratic-controlled Senate, where lawmakers have signaled skepticism toward the scope of the proposed cuts.

Lawmakers also approved a separate $152 million supplemental spending bill to fund runway improvements at Selfridge Air National Guard Base in Macomb County. Gov. Gretchen Whitmer is expected to sign the measure.

State Rep. Penelope Tsernoglou, a Democrat from East Lansing, says Michigan House Speaker Matt Hall removed her from all committee assignments in retaliation for publicly pressing Republican leadership to investigate convicted sex offender Jeffrey Epstein’s connections to the Interlochen Center for the Arts in northern Michigan.

According to the Michigan Advance, Tsernoglou announced the accusation after hosting a press conference Tuesday urging lawmakers to take action on House Resolution 284, which would establish a bipartisan select committee to examine Epstein’s ties to the renowned arts boarding school in Grand Traverse County.

The resolution has backing from most House Democrats and several Republicans, including Reps. Jaime Greene of Richmond, William Bruck of Erie Township and Brad Paquette of Niles.

The renewed scrutiny follows a February NPR investigation detailing how Epstein and associate Ghislaine Maxwell allegedly used Interlochen as a place to meet and groom some of their earliest victims during the 1990s. The report cited Justice Department records and interviews with former school administrators.

Interlochen officials have said the school severed ties with Epstein after learning of his 2008 conviction on prostitution-related charges involving a minor.

In a statement, the school said two separate internal reviews found no reports of misconduct involving Epstein on campus. However, administrators acknowledged that two individuals later publicly stated they met Epstein through Interlochen, prompting the school to invite former students to participate in an outside investigation into historical misconduct allegations.

Tsernoglou called her removal from committee posts “shocking” and accused Hall of engaging in a “cover-up” rather than supporting transparency for survivors of sexual abuse.

Hall denied the decision was connected to the Epstein investigation effort. Speaking to reporters Wednesday, the Richland Township Republican said Tsernoglou was removed because of what he described as disruptive conduct during a recent House oversight subcommittee meeting chaired by Rep. Jason Woolford, R-Howell.

U.S. Rep. Kristen McDonald Rivet announced a new ethics policy Thursday prohibiting employees in her congressional office — including herself — from participating in online prediction markets, citing concerns about insider trading and public trust.

The Bay City Democrat said the policy is intended to prevent government officials from profiting from confidential information obtained through their public service roles. The congresswoman represents Michigan’s 8th Congressional District, which includes Midland, Bay and Genesee counties.

“Too many public officials have gotten rich betting on insider information from their jobs. Not in my office,” McDonald Rivet said in a statement. “People in mid-Michigan deserve to know we work for them, not our own wallets.”

Prediction markets allow users to wager money on the outcome of current events, including elections, economic trends, foreign affairs and other political developments. Critics have increasingly raised concerns that elected officials, campaign staff and government employees could use nonpublic information to gain an advantage on such platforms.

Under the new policy, all full-time and part-time employees, interns and fellows working in McDonald Rivet’s office are barred from participating in prediction markets through websites, mobile applications or similar platforms. The restriction applies specifically to political and event-based wagering systems and does not prohibit lawful personal gambling activities such as sports betting.

McDonald Rivet framed the move as part of a broader anti-corruption agenda she has pursued since taking office. Last year, she unveiled a package of ethics reforms aimed at Congress, the White House and the U.S. Supreme Court. She has also publicly backed legislation to ban members of Congress from trading individual stocks while in office.

In addition, McDonald Rivet has called on the U.S. Department of Justice to prioritize investigations into potential insider trading tied to prediction markets, arguing that current regulations have not kept pace with the growth of online wagering platforms.

Bipartisan lawmakers in the Michigan Legislature are proposing sweeping constitutional changes to how the state selects university governing boards and nominates candidates for attorney general and secretary of state, the Detroit News reported.

Joint resolutions introduced Thursday in the House and Senate would ask voters to shift attorney general and secretary of state nominations from partisan conventions to statewide August primary elections.

The proposal would also end Michigan’s long-standing practice of electing governing board members for the University of Michigan, Michigan State University and Wayne State University, replacing it with a gubernatorial appointment system.

The legislation is sponsored by Sen. Ed McBroom, R-Waucedah Township, and Reps. Greg Markkanen, R-Hancock, and former House Speaker Joe Tate, D-Detroit. Former Govs. John Engler and Jim Blanchard have spent several years advocating for similar reforms and are backing the effort.

Supporters argue the changes are needed following years of controversy involving the universities’ governing boards, including disputes tied to the Larry Nassar scandal at Michigan State University, allegations surrounding former University of Michigan physician Robert Anderson and leadership instability at multiple campuses.

Under the proposal, the current elected boards at UM, MSU and Wayne State would be dissolved at the end of 2026. Governors would instead appoint nine-member boards serving staggered eight-year terms, subject to Senate confirmation. No more than five members could belong to the same political party, and additional requirements would ensure alumni representation and, at Michigan State, agricultural expertise.

The measure also follows criticism surrounding Michigan’s recent party conventions, particularly after procedural disputes and vote-counting problems at the Michigan Democratic Party’s April convention.

Secretary of State Jocelyn Benson has publicly endorsed moving attorney general and secretary of state nominations to primary elections, arguing it would allow far broader voter participation.

The proposed constitutional amendments would require approval by two-thirds of both legislative chambers before appearing on a statewide ballot.