Bill > HB5140

This bill amends the existing law governing hotel-motel accommodation taxes in Michigan, introducing several significant changes. The bill creates a framework for counties and local governments to levy an excise tax on accommodations, with new provisions for how these taxes are collected, administered, and reported. Key changes include expanding the definition of accommodations, requiring an administration agreement with the Michigan Department of Treasury for imposing the tax, and mandating that marketplace facilitators (like online booking platforms) collect and remit taxes on rental transactions. The bill increases the maximum tax rate for local units of government from 2% to 3% and allows counties to levy up to 8% in taxes, with voter approval required for rates above 5%. Starting in 2027, counties and local governments must file annual reports with the Department of Treasury detailing their tax collection and expenditures, which will be published online. The revenues can be used for various purposes, including convention facility improvements, tourism promotion, and general fund expenses. The bill also creates a local accommodations excise tax trust fund in the state treasury to manage the tax collections, with provisions for transparency, auditing, and proper allocation of funds. Notably, the bill will only take effect if two related House Bills (HB 5139 and HB 5138) are also enacted into law.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5140