The state Senate has passed legislation aimed at spurring homes sales in Michigan.
Republicans say bills approved Thursday would address the so-called "pop-up" tax that results when someone buys a home.
Under Michigan's property tax system, a home's taxable value rises to the home's market value when it's sold. Critics say that's a disincentive to buy a house in Michigan.
The Senate plan would give people who buy a new house an income tax credit against the amount their property taxes would rise over the previous owner's taxes.
Many Democrats supported the bills but some criticized the GOP for reducing tax revenue without making corresponding spending cuts.
The House passed its own pop-up tax relief plan last year but the Senate hasn't taken it up.