LANSING – House Speaker Matt Hall says he wants to reduce property taxes to make housing more affordable. It is part of his proposed $5 billion tax overhaul, which Hall, R-Richland, says would be the biggest tax cut in state history.

Property taxes pay for local government services such as police, fire, parks, streets, jails and elections and zoning.

The proposal is part of a wider political debate over taxes raised by Republicans in an election year.

For example, Republican gubernatorial candidate Perry Johnson is pushing a plan to amend the state constitution to “dramatically reduce or eliminate property taxes, especially for seniors over 65,” according to his campaign website.

Homeowners should not be penalized simply for owning and living in their homes, he says on the website. 

Johnson’s proposal would require a statewide vote on a constitutional amendment. 

James Hohman is the director of fiscal policy at the Mackinac Center for Public Policy, a free market-oriented research institute in Midland.

He said Hall’s proposal to cut property taxes would allow homeowners to save money.

Hohman said Michigan has a higher tax rate than many other states. A table from the Tax Foundation shows Michigan’s property tax rates as higher than in Maryland, Massachusetts, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nevada, New Mexico, North Carolina, North Dakota and Kentucky.

Jeff Wiggins, Hall’s press secretary, said housing is becoming more expensive and the speaker’s proposal would relieve stress on people who want to stay in their homes.

Hohman said property taxes are a key issue in housing affordability, whether someone is a renter or a homeowner.

Hohman said there are a lot of ways to tackle housing affordability, including reducing property taxes.

Nicholas Hess, the fiscal policy analyst for the Michigan League for Public Policy, said there are not enough specifics on the Republicans’ property tax cut proposals and that local governments’ options to provide services would be negatively impacted.

Hess said there are a lot of problems where there is not enough revenue, and he said the proposals would not leave enough revenue for public services.