The Mathieu-Gast Home Improvement Act

The Mathieu-Gast Home Improvement Act

Rachel L. Hillegonds | Holland Attorney

A home, whether a principal residence, second home or rental property, is often our largest asset. Ongoing maintenance, repairs and improvements to a home are important to preserve and increase the value of that asset. With home ownership also comes property tax obligations. Tax bills in Michigan are calculated by multiplying the taxable value of the property by the local tax millage rate. The taxable value can only increase each year by 5% or the Consumer Price Index, whichever is less, unless it is uncapped after a transfer of ownership occurs or new construction is added to the property.

Could maintenance, repairs and improvements increase the taxable value of your home? Thanks to the Mathieu-Gast Home Improvement Act, MCL 211.27(2) (the “Act”), the answer to that question is often “no.” According to the Act, “[t]he assessor shall not consider the increase in true cash value that is a result of expenditures for normal repairs, replacement, and maintenance in determining the true cash value of property for assessment purposes until the property is sold.” Normal repairs, replacement and maintenance include:

  1. outside painting;
  2. repairing or replacing siding, roof, porches, steps, sidewalks, or drives;
  3. repainting, repairing, or replacing existing masonry;
  4. replacing awnings;
  5. adding or replacing gutters and downspouts;
  6. replacing storm windows or doors;
  7. insulating or weatherstripping;
  8. complete rewiring;
  9. replacing plumbing and light fixtures;
  10. replacing a furnace with a new furnace of the same type or replacing an oil or gas burner;
  11. repairing plaster, inside painting, or other redecorating;
  12. new ceiling, wall, or floor surfacing;
  13. removing partitions to enlarge rooms;
  14. replacing an automatic hot water heater;
  15. replacing dated interior woodwork;
  16. installing, replacing, or repairing an alternative energy system, without regard to ownership of the system, with a generating capacity of not more than 150 kilowatts, the annual energy output of which does not exceed the annual energy consumption measured by the utility-provided electrical meter on the system to which it is connected.

Structural additions are not covered by the Act. Additionally, the Act applies to residential property only, which can include certain rental homes. If you are planning to make improvements to your property, you can file a Form 865 Request for Nonconsideration of True Cash Value of Normal Repair, Replacement, and Maintenance Expenditures with the assessor to ensure proper application of the Act. However, except for certain limited circumstances, assessors are required to give non-consideration treatment to known qualifying changes to a home, even if the taxpayer has not filed the Form 865.

If you have questions about whether anticipated work on your home qualifies for non-consideration under the Act, if you want assistance in filing the Form 865, or if you believe the Act has not been properly applied to changes made to your property, the Cunningham Dalman, P.C. real estate team can help. Please contact Rachel Hillegonds,, or Randy Schipper,, or call (616) 392-1821 to schedule an appointment.

Cunningham Dalman, PC publishes this web site and its component parts to inform users about our firm, our attorneys and general new developments in the law. The web site and blogs are not intended as legal advice on any matter. There are many factors that may affect your situation. You should not act or refrain from acting because of information found here without first seeking appropriate legal or other professional advice from someone who is familiar with your particular circumstances.

In the operation of this web site and our blogs, we do not intend to create an attorney-client relationship with you and no such relationship shall be created by your use of this web site. Such a relationship can only be established to the extent an attorney at Cunningham Dalman, PC expressly agrees to undertake the relationship. Please do not communicate to us any information you regard as confidential unless and until we have established a formal attorney-client relationship with you. Any information you send to us before we establish an attorney client relationship may not be privileged or confidential. Information you send to us over the Internet may not be secure.

Our Practice Areas
Our Practice Areas

Recent Posts


Cunningham Dalman P.C.
PO Box 1767
321 Settlers Road
Holland, MI 49422-1767

Google Map


Best Law Firm 2023 - Best of the Best
Scroll to Top

Tell Us How We Can Help You

Send us a quick message or call us at 616.392.1821!

Seminar Registration

Fill in the form below to reserve your spot today for each person attending. If you have any questions, please call the office at 616.392.1821.

Call Now Button