An initiative to eliminate property taxes in Michigan would result in massive funding shortfalls for local governments and public schools, according to Eric Lupher, president of the Citizens Research Council of Michigan (CRC). Speaking on WSJM’s “The Morning Show with Ken & Friends” program Friday morning, Lupher provided a nonpartisan analysis of the “Ax MI Tax” ballot proposal, which seeks to amend the state constitution.
If it makes it to the ballot and is approved by voters, the proposed amendment would abolish all property taxes in Michigan, effective 60 days after the 2026 election. Lupher stated this would remove approximately $2.5 billion in annual revenue—roughly a third of all taxes collected in the state.
While the initiative proposes to backfill some of this lost revenue by redirecting a larger portion of state sales tax, as well as a percentage of income tax and marijuana, alcohol, and tobacco taxes to local governments, Lupher’s analysis shows it would be far from a dollar-for-dollar replacement.
“When you do the math…it’s still a $4 billion result in less taxes to cities, villages, and townships,” Lupher said. For counties, he added, the deficit would be an estimated $1.7 billion annually.
Perhaps most critically, the proposal offers “no backfill for schools,” which rely heavily on property taxes.
Lupher acknowledged the sentiment behind the initiative—that “nobody likes to pay taxes”—and the public’s frustration with government services. However, he warned of the drastic consequences.
“Taking away all their money isn’t how you fix schools,” Lupher stated. He emphasized that the changes required to reorganize government funding would be “massive” and could not happen overnight, cautioning that using a constitutional amendment to “just blow everything up and let’s see where the dust settles has huge implications.”
The initiative also raises concerns about the state’s creditworthiness. Lupher noted that a refusal to collect taxes for debt repayment could put Michigan on “the radar of Wall Street” in a negative way and threaten its financial stability.
The CRC, a 109-year-old independent think tank, is not taking a stance for or against the initiative. Instead, it said its mission is to provide objective information so policymakers, business leaders, and citizens can make informed decisions.
“We have to agree on the facts,” Lupher said, “and we try to provide those facts so people can make sound policy.”
You can view the full interview online here or on the WSJM app.
Initiative leader for Ax MI Tax, Karla Wagner, has posted a number of articles on her website calling for an end to Michigan’s property tax, saying, “Any time we pay a government entity to provide a service, the end recipient gets much less than the full amount. Too many hands grab too many of those dollars before it reaches the intended party.”
“We must force the government and other entities seeking our dollars to find another source of revenue. AND THEY MUST STOP SPENDING!!! We are being taxed out of our homes and off our property!! We are being forced to close the very businesses that offer us jobs and a living!!!”
The petition organizers are now gathering signatures, hoping for a spot on the 2026 ballot.
