Legislation from state Rep. Jamie Thompson that will provide workers, families and small business owners with lower utility bills was advanced today by the Michigan House.

Thompson’s House Bill 5879 requires natural gas and electric utility companies to pass down savings they will receive through personal property tax reforms in the most recent tax year to customers. The bill is part of a broader plan to reform property taxes in Michigan to put more money back into people’s pockets and lower barriers for home ownership.

“Every member in this chamber hears from people and families they represent about high costs,” said Thompson, of Brownstown Township. “Their budgets are stretched thin. They’re making tough decisions about what they can pay for. They’re working two or three jobs just to make ends meet and put food on the table. They demand solutions to make their lives more affordable.

“We are delivering with one of the largest tax relief plans in our state’s history. I thoroughly support these bills because they tell my constituents their bottom line matters, not state government’s.”

Average homeowners would pay roughly 14 percent less in overall property taxes through the series of bills, leaving more money to help pay for groceries, home improvements, and other household expenses. When combining recently passed energy plans and proposals advanced today that eliminate state property taxes and provide savings on monthly electric bills, Thompson noted that Michigan families will save nearly $1,400 every year and nearly $5 billion would be returned to taxpayers statewide.

Energy rates have been skyrocketing for Michigan families. The Michigan Public Service Commission has approved $1 billion in rate hikes on utility customers since 2023. One utility provider, DTE Energy, is asking the commission to approve a nearly $500 million rate increase just a few months after a separate $250 million increase went into effect. A $276.6 million rate increase from Consumers Energy went into effect earlier this month after the request was approved by state regulators in March.

“We’ve all seen news reports about rate increases from these companies, and the numbers are shocking,” Thompson said. “It sounds like Monopoly money. But to my constituents who pay these higher rates, it’s real money they’re on the hook for. House Republicans are stepping up and stepping in to provide people with relief.”

Thompson’s plan would provide state oversight to ensure a decrease in residential utility rates, and utilities would not be able to file for rate increases for two years after savings are distributed.

HB 5879 now moves to the Senate for consideration.