Whitmer floats ‘sales tax holiday’ for school supplies, property tax refund for seniors

By Danielle James, Tribune Information Service

Governor Gretchen Whitmer will unveil the ultimate funds proposal she’s going to make as head of state on Wednesday afternoon.

Forward of her Feb. 11 funds presentation to a joint assembly of the Home of Representatives and the Senate, which can cowl fiscal yr 2027, she shared a number of sneak peeks.

That features a new gross sales tax “vacation” on faculty provides, together with a proposed property tax discount for seniors.

Each are a part of what Whitmer’s workplace known as a “Saving Michiganders Cash Plan,” supposed as a approach to assist a number of susceptible populations involved concerning the rising prices of groceries, housing, well being care and utilities.

“As Michiganders face vital nationwide financial uncertainty, we should work collectively to scale back prices to allow them to pay the payments, put meals on the desk and care for his or her kids,” Whitmer mentioned.

Among the many new proposals anticipated in Whitmer’s funds presentation is a property tax discount for 355,000 seniors.

Her workplace mentioned the plan would concentrate on refunding about 10% of property taxes for seniors, saving these households a mean of $345 a yr.

It isn’t but clear how these proposals will have an effect on state funding.

Whitmer is anticipated to supply extra particulars concerning the plan on Wednesday as a part of her bigger funds presentation, however this comes after state funds officers introduced final month that lawmakers can have about $1 billion much less normally fund income to allocate.

In referencing tax breaks for seniors, Whitmer additionally highlighted the current completion of a “full rollback of the retirement tax” and an finish to Social Safety taxes, each provisions beforehand handed.

The phased strategy to abolish taxes on pension revenue was signed into regulation in March 2023. Now in full impact, Whitmer says he’ll put a mean of $1,000 again into the pockets of almost 500,000 seniors.

The tip of the state tax on ideas, additional time and Social Safety advantages was signed into regulation final October. Whitmer mentioned it will save 40,000 seniors “lots of of {dollars} a yr.”

The governor’s different new proposal — a brand new gross sales tax exemption on faculty provides — comes after a July 2025 report discovered that greater than a 3rd of oldsters surveyed mentioned they could not afford to return to highschool purchasing.

About 44% of them deliberate to tackle debt to cowl prices.

“They want actual assist to save cash now,” Whitmer mentioned of Michigan mother and father, “particularly on their paychecks, meals and training.”

The “focused tax minimize,” as Whitmer’s workplace describes it, would eradicate the 6% gross sales tax on purchases of clothes, classroom provides and computer systems.

The financial savings would apply to each on-line and in-person purchases.

Different gadgets Whitmer mentioned her funds proposal would proceed embrace free pre-Okay for all Michigan college students and free breakfast and lunch for all 1.4 million public faculty attendees.

She plans to pitch making free faculty meals legally everlasting.

Whitmer additionally highlighted the Working Households Tax Credit score, a beforehand handed invoice that equated Michigan’s tax credit score to the federal Earned Earnings Tax Credit score at 30%, up from 6%. The typical mixed reimbursement is $3,900 for 665,000 households, in response to Whitmer’s workplace.

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