LANSING, MI (WOWO) Matt Hall (R-Richland Township) is proposing a 6% sales tax on certain luxury services as part of a sweeping plan to cut property taxes and lower energy bills in Michigan.

Hall says the proposed service tax could generate approximately $4.73 billion in state revenue. The funding would help offset a broader $5 billion tax overhaul that includes eliminating the State Education Tax, the real estate transfer tax, and remaining personal property taxes.

Under the proposal, services subject to the new tax would include limousines, country club memberships, tourist services, skiing, golf, artificial intelligence services, performing arts, private jet services, marinas, environmental consulting and political advertising.

However, many commonly used services would remain exempt, including health care, child care, legal services, landscaping, car repairs, veterinary care, nail salons and barbers.

Hall argues the plan would result in a net tax cut of roughly $270 million and called it potentially the largest tax reform in Michigan’s history. He also said tourism-related taxes would largely be paid by out-of-state visitors.

The proposal marks the first major push to expand Michigan’s sales tax to services since former Governor Jennifer Granholm attempted similar reforms in 2007 and 2010 according to Bridge Michigan.

Hall’s broader plan also includes mandating $1 billion in utility rate rollbacks. He contends eliminating personal property taxes for utilities must come with guaranteed energy savings for residents.

The proposal is expected to face legislative debate in the coming weeks as lawmakers consider its economic impact and political feasibility.