Bill Text: MI HB5443 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Taxation: hotel-motel; excise tax on business of providing accommodations; clarify application to short-term rentals and make other modifications. Amends title & secs. 1, 2, 3, 4, 6 & 7 of 1974 PA 263 (MCL 141.861 et seq.). TIE BAR WITH: HB 5438'24
Spectrum: Partisan Bill (Democrat 20-0)
Status: (Introduced) 2024-02-14 - Per Rule 41 Referred To Committee On Local Government And Municipal Finance [HB5443 Detail]
Download: Michigan-2023-HB5443-Introduced.html
HOUSE BILL NO. 5443
A bill to amend 1974 PA 263, entitled
"An act to permit counties to impose and collect an excise tax on persons engaged in the business of providing rooms for dwelling, lodging, or sleeping purposes to transient guests; to provide for the disposition of the revenues thereof; and to prescribe penalties,"
by amending the title and sections 1, 2, 3, 4, 6, and 7 (MCL 141.861, 141.862, 141.863, 141.864, 141.866, and 141.867), section 2 as amended by 2004 PA 118, section 4 as amended by 2014 PA 284, and section 7 as amended by 1989 PA 13.
the people of the state of michigan enact:
An act to permit counties to impose and collect an excise tax on persons engaged in the business of providing rooms for dwelling, lodging, or sleeping purposes to transient guests, including short-term rentals; to provide for the disposition of the revenues thereof; from the excise tax; and to prescribe penalties.
(a) "Accommodations" means the room or other space provided for sleeping, including furnishings and other accessories therein. in the room or other space. Accommodations include, but are not limited to, a dwelling offered as a short-term rental. Accommodations do not include food and beverages.
(b) "Administrator" means the official designated by the county to collect the excise tax and to administer and enforce the ordinance.
(c) "Convention and entertainment facilities" means all, or any part, or any combination of convention halls, auditoriums, stadiums, music halls, arenas, meeting rooms, exhibit areas, and related public areas.
(d) "Excise tax" means the excise tax levied by a county under this act.
(e) "Occupancy charge" means that term as defined in section 2 of the short-term rental regulation act.
(f) "Ordinance" means an ordinance enacted by a county under this act to levy, assess, and collect an excise tax.
(g) "Owner", with respect to a short-term rental, means that term as defined in section 2 of the short-term rental regulation act.
(h) (d) "Person" means a natural person, partnership, fiduciary, association, corporation, or other entity.
(i) (e) "Revenues" means the income derived from the excise tax, plus interest and penalties imposed by this act, levied and assessed under an ordinance adopted pursuant to this act.
(j) "Short-term rental" means that term as defined in section 2 of the short-term rental regulation act.
(k) (f) "Transient guest" means a natural person staying less than 30 consecutive days.
Sec. 2. (1) The county board of commissioners of a county having that has a population of less than 600,000 persons, and having that has a city with a population of at least not less than 40,000 population may enact an ordinance to levy, assess, and collect an excise tax from all persons engaged in the business of providing rooms for dwelling, lodging, or sleeping purposes, except in hospitals or nursing homes, to transient guests, whether or not membership is required for the use of the accommodations, including, but not limited to, owners of short-term rentals.
(2) If a county meets the requirements of subsection (1) on the date it enacts an ordinance under this act and, after the 1990 decennial census, the county has a population of less than 120,000 persons and has a city with a population of 35,000 or more, persons, that county may continue to levy, assess, and collect the excise tax under this act until October 1, 1991.
(3) If a county described in subsection (2) has any accommodations located within the county that are also located within the boundaries of a city in which the majority of the population of that city reside in an adjoining county, then the accommodation is exempt from the excise tax under this act.levied by the county.
(4) If a county described in subsection (2) has any accommodations located within the county that are also located within the boundaries of a city with a population of less than 5,000 persons, then the accommodation is exempt from the excise tax under this act.levied by the county.
(5) The An ordinance provided by this act may be amended or repealed in the same manner as it was adopted.
(6) The excise tax imposed pursuant to this act shall by a county must be at a rate of not more than 5% of the total charge for accommodations subject to this act. For a short-term rental, the total charge for accommodations is the occupancy charge.
(7) If a county meets the requirements of subsection (1) on the date it enacts an ordinance, under this act, the county may continue to levy, assess, and collect the excise tax. under this act.
Sec. 3. A county levying a an excise tax pursuant to an ordinance adopted under this act shall provide in the ordinance for all of the following:
(a) The effective date of the ordinance, which shall be in accordance must comply with section 5.
(b) The rate of the excise tax to be imposed.
(c) The rate and manner of the imposition of interest and penalties for delinquency in payment of excise taxes or other violations of the ordinance. The interest imposed on delinquency in payment of the excise tax shall must not be more than 1% per month or fraction thereof of a month of the unpaid excise tax after the due date thereof until paid. The penalty for delinquency in payment of the excise tax when due or other violations of the ordinance may be in addition to the interest but shall must not be more than 5% of the amount of the unpaid excise tax per month or fraction thereof of a month after the due date thereof until paid. However, the penalty shall must not exceed 25% of the unpaid excise tax.
(d) The determination and allowance of abatements and refunds.
(e) The designation of the administrator of the excise tax and methods of collection.
Sec. 4. A county levying a an excise tax under this act may provide in the ordinance for 1 or more of the following:
(a) The adoption and enforcement of rules to apply, interpret, effectuate, and administer the ordinance and the purposes of the excise tax.
(b) The prescribing and furnishing to taxpayers of forms, instructions, manuals, and other materials necessary for indorsement of the excise tax and the auditing of tax returns.
(c) The examination by the administrator or his the administrator's agent of the books and records of a taxpayer for purposes of determining the correctness of a tax return or information filed, or the determination of any tax liability under this act.
(d) The imposition of a fine of not more than $500.00, or imprisonment of not more than 90 days, or both for violation of the ordinance.
(e) If the excise tax imposed under this act remains unpaid for more than 90 days, the treasurer of the county may collect the excise tax in the same manner as a delinquent special assessment, along with any associated interest, fees, and costs, under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
Sec. 6. The excise taxes levied under this act shall be are in addition to any other taxes, charges, or fees.
Sec. 7. The revenues derived from the excise taxes imposed pursuant to this act shall must be deposited in a special fund to be used by the county, or by an authority that is organized pursuant to state law, together with other available funds only to pay for 1 or more of the following:
(a) The cost of administration and enforcement of the ordinance.
(b) The financing of the acquisition, construction, improvement, enlargement, repair, or maintenance of convention and entertainment facilities, including, except as provided in subdivision (e), the payment of principal and interest, when due, on bonds or other evidence of indebtedness issued by the county for convention and entertainment facilities.
(c) Except as provided in subdivision (e), current or future annual rental payable by the county to an authority organized pursuant to state law for the purpose of acquiring, constructing, improving, enlarging, repairing, or maintaining the convention and entertainment facilities and leasing them to the county.
(d) The promotion and encouragement of tourist and convention business in the county.
(e) The principal and interest, when due, on bonds or other evidence of indebtedness issued by or on behalf of the county for the purpose of financing the construction of a museum, or the current or future rental payable by the county to an authority organized pursuant to state law for the purpose of constructing a museum and leasing it to the county, only if the museum is located in a city with a population of 180,000 or more.
(f) Programs to assist with or provide child care.
(g) Housing activities.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 5438 (request no. 03372'23 **) of the 102nd Legislature is enacted into law.
