Bill Text: MI HB4554 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Taxation; hotel-motel; Michigan short-term rental promotion act that provides for registry of short-term rentals; create. Creates new act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-05-07 - Bill Electronically Reproduced 05/02/2019 [HB4554 Detail]
Download: Michigan-2019-HB4554-Introduced.html
HOUSE BILL No. 4554
May 2, 2019, Introduced by Rep. Lilly and referred to the Committee on Commerce and Tourism.
A bill relating to the promotion of convention business and
tourism in this state; to provide for collection of certain data,
promotion, and regulation of certain short-term rentals at certain
short-term transient facilities; to create certain databases; to
provide for collection of certain taxes and assessments on the
owners of certain short-term transient facilities; to establish the
functions and duties of certain state departments and employees;
and to prescribe certain fines, penalties, and remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"Michigan short-term rental promotion act".
Sec. 2. As used in this act:
(a) "Department" means the department of licensing and
regulatory affairs.
(b) "Director" means the director of the department.
(c) "Hosting platform" means a service through a digital
platform, third-party website, software, online-enabled
application, mobile phone application, or some other similar
electronic process that allows:
(i) An owner or owner agent to advertise, list, or offer the
short-term rental of short-term transient facilities under this
act.
(ii) An owner or owner agent to collect the payment of a
short-term rental of a short-term transient facility under this
act.
(iii) A person to arrange, book, reserve, or rent a short-term
rental of a short-term transient facility under this act.
(d) "Owner" means the owner of a short-term transient facility
located within this state or, if the short-term transient facility
is operated or managed by an owner agent, then the owner agent of
that short-term transient facility, that provides short-term
rentals.
(e) "Owner agent" means a person who on behalf of an owner of
a short-term rental of a short-term transient facility, including,
but not limited to, a property manager, property management
company, or real estate agent that does 1 or more of the following:
(i) Manages the operation or upkeep of a short-term transient
facility offered for rent.
(ii) Books reservation at a short-term transient facility
offered for rent.
(f) "Room" means a room or other space provided for sleeping,
including the furnishings and other accessories in the room.
(g) "Short-term rental" means, except as otherwise provided in
this subdivision, a rental of a short-term transient facility of
not more than 30 consecutive days. A short-term rental does not
include the rental of a short-term transient facility if that
property is rented out for 14 days or less in a calendar year.
(h) "Short-term transient facility" means an apartment, house,
cottage, condominium, or other occupied property where 1 or more
rooms are rented by an owner through the use of advanced
reservations. A short-term transient facility does not include a
hotel or a motel.
(i) "Short-term transient facility database" means the short-
term transient facility database created in section 3.
(j) "Transient guest" means a person who occupies a room in a
short-term transient facility for less than 30 consecutive days
regardless of who pays the room charge for the room.
(k) "Use tax" means the tax imposed under the use tax act,
1937 PA 94, MCL 205.91 to 205.111.
Sec. 3. The department shall create and operate a short-term
transient facility database and that database shall be updated by
the department each year. The short-term transient facility
database shall also include all of the following:
(a) A description of the short-term transient facility.
(b) Number and type of rooms at the short-term transient
facility.
Sec. 4. (1) Each year the owner or the owner agent of a short-
term transient facility shall file with the department a
certificate that provides all of the following:
(a) Name and address of the owner of the short-term transient
facility.
(b) Address of the short-term transient facility.
(c) Number and types of rooms at the short-term transient
facility.
(d) Certification that the owner has $1,000,000.00 or more
liability insurance on the short-term transient facility.
(e) Certification that all use taxes, local excise taxes, and
assessments levied, imposed, and assessed have been paid by the
owner or owner agent for the immediately preceding tax year.
(2) The director shall prescribe the forms necessary for the
administration of this act and may promulgate necessary rules under
the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to 24.328.
Sec. 5. An owner of a short-term transient facility shall
maintain liability insurance of $1,000,000.00 or more on the short-
term transient facility for each short-term rental while it is
being offered for rent to transient guests unless such short-term
rental is offered through a hosting platform that maintains equal
or greater insurance coverage. Insurance coverage described in this
section must defend and indemnify the operator and any tenants or
owners in the short-term transient facility for bodily injury and
property damage arising from the short-term rental.
Sec. 6. An owner of a short-term transient facility shall not
operate that short-term transient facility if that owner fails to
pay any use tax, local excise tax, or assessment imposed by law,
when due, as determined by the department.
Sec. 7. An owner may elect to have an owner agent, hosting
platform, or other intermediary collect room charges, use taxes,
local excise taxes, and assessments described in this act through a
written agreement. The written agreement shall clearly provide each
party's responsibility to remit those use taxes, local excise
taxes, and assessments described in this act.
Sec. 8. An owner or owner agent who violates this act is
responsible for a civil fine and may be ordered by the department
to pay a civil fine of not more than $15,000.00 for each violation.
Sec. 9. (1) Zoning of short-term transient facilities and
short-term rentals is subject to the Michigan zoning enabling act,
2006 PA 110, MCL 125.3101 to 125.3702.
(2) A local unit of government shall not have a zoning
ordinance or a zoning decision that has the effect of totally
prohibiting short-term rentals of short-term transient facilities
in compliance of section 207 of the Michigan zoning enabling act,
2006 PA 110, MCL 125.3207.
(3) The department shall create a workgroup of stakeholders
composed of representatives of local units of government,
representatives of the tourism industry, and representatives of
real estate professionals to assist the department in developing
best practices and model short-term rental zoning.
