Bill Text: MI HB5445 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Taxation: convention tourism assessments; convention and tourism marketing act; clarify application to short-term rentals and make other modifications. Amends title & secs. 2, 3, 4 & 8 of 1980 PA 383 (MCL 141.882 et seq.). TIE BAR WITH: HB 5438'24
Spectrum: Partisan Bill (Democrat 21-0)
Status: (Introduced) 2024-02-14 - Per Rule 41 Referred To Committee On Local Government And Municipal Finance [HB5445 Detail]
Download: Michigan-2023-HB5445-Introduced.html
HOUSE BILL NO. 5445
A bill to amend 1980 PA 383, entitled
"Convention and tourism marketing act,"
by amending the title and sections 2, 3, 4, and 8 (MCL 141.882, 141.883, 141.884, and 141.888), the title and section 2 as amended by 2018 PA 625.
the people of the state of michigan enact:
An act relating to the promotion of convention business and tourism in this state and the major metropolitan areas of this state; to provide for tourism and convention marketing programs in major metropolitan areas through nonprofit convention and tourist bureaus; to allow certain activities as part of tourism and convention marketing programs; to provide for imposition and collection of assessments on the owners of transient facilities, including short-term rentals, to support tourism and convention marketing programs; to provide for the disbursement of the assessments; to establish the oversight functions and duties of certain state departments, state agencies, and state employees; and to prescribe remedies and penalties.
(a) "Assessment" means the amount levied against an owner of a transient facility within an assessment district computed by application of the applicable percentage against aggregate room charges with respect to that transient facility during the applicable assessment period.
(b) (a) "Assessment district" means a county having a population of more than 1,500,000 and, if so designated by the bureau in the marketing program notice, any county or counties contiguous with it.
(c) (b) "Assessment revenues" means the money derived from the assessment, including any interest and penalties on the assessment, imposed by this act.
(d) (c) "Board" means the board of directors of a bureau.
(e) (d) "Bureau" means a nonprofit corporation incorporated under the laws of this state existing solely to promote convention business and tourism within this state or a portion of this state, and which complies with all of the following:
(i) Has not less than 400 dues paying members, of which not less than 50 are owners of transient facilities.
(ii) Has been actively engaged in promoting convention business and tourism for not less than 10 years.
(iii) Has a board of directors elected by its members.
(iv) Has a full-time chief operating officer and not less than 10 full-time employees.
(v) Is a member of 1 or more nationally recognized associations of travel and convention bureaus.
(f) (e) "Director" means the president of the Michigan strategic fund or his or her the president of the Michigan strategic fund's designee.
(g) (f) "Marketing program" means a program established by a bureau to develop, encourage, solicit, and promote convention business and tourism within this state or a portion of this state within which the bureau operates. The encouragement and promotion of convention business and tourism shall include includes any service, function, or activity, whether or not performed, sponsored, or advertised by a bureau, which that intends to attract transient guests to the assessment district.
(h) (g) "Marketing program notice" means the notice described in section 3.
(i) (h) "Master plan" means the comprehensive, long-range master plan developed by the Michigan travel commission and the travel bureau under section 2c of the Michigan tourism policy act, 1945 PA 106, MCL 2.102c.
(j) (i) "Owner" means the owner of a transient facility located within the assessment district or, if the transient facility is operated or managed by a person other than the owner, then the operator or manager of that transient facility.
(k) (j) "Room" means a room or other space provided for sleeping, including the furnishings and other accessories in the room. Room includes, but is not limited to, a dwelling offered as a short-term rental.
(k) "Assessment" means the amount levied against an owner of a transient facility within an assessment district computed by application of the applicable percentage against aggregate room charges with respect to that transient facility during the applicable assessment period.
(l) "Room charge" means the charge imposed for the use or occupancy of a room, excluding charges for food, beverages, state use tax, telephone service or like services paid in connection with the charge, and reimbursement of the assessment imposed by this act. For a short-term rental, room charge means the occupancy charge as that term is defined in section 2 of the short-term rental regulation act.
(m) "Short-term rental" means that term as defined in section 2 of the short-term rental regulation act.
(n) "State use tax" means the tax levied under the use tax act, 1937 PA 94, MCL 205.91 to 205.111.
(o) (m) "Transient facility" means either of the following facilities, except transient facility does not include a hospital or nursing home:
(i) A building which that contains 35 1 or more rooms used in the business of providing dwelling, lodging, or sleeping to transient guests, whether or not membership is required for the use of the rooms. A transient facility shall not include a hospital or nursing home.
(ii) A dwelling offered as a short-term rental.
(p) (n) "Transient guest" means a natural person who occupies a room in a transient facility for less than 30 consecutive days regardless of who pays the room charge.
(q) (o) "Travel bureau" means the Michigan travel bureau created under section 2a of the Michigan tourism policy act, 1945 PA 106, MCL 2.102a, and renamed Travel Michigan by Executive Reorganization Order No. 1997-1, MCL 2.111.
Sec. 3. (1) A bureau which that has its principal place of business in a county having with a population of more than 1,500,000 may file a marketing program notice with the director. The notice shall must state that the bureau proposes to create a marketing program under this act and cause an assessment to be collected from owners of transient facilities within the assessment district to pay the costs of the program.
(2) The marketing program notice shall must describe the structure, history, membership, and activities of the bureau in sufficient detail to enable the director to determine if the bureau satisfies all of the requirements of section 2(d).2(e).
(3) The marketing program notice shall must describe the marketing program to be implemented by the bureau with the assessment revenues, specify the amount of the assessment proposed to be levied which shall must not exceed 2% of the room charges in the applicable payment period, and the county or counties comprising the assessment district. A county shall must not be included in the marketing program notice and the assessment district specified in the notice if on the date the notice is mailed the county is collecting a tax pursuant to Act No. 263 of the Public Acts of 1974, being sections 141.861 to 141.867 of the Michigan Compiled Laws.under 1974 PA 263, MCL 141.861 to 141.867.
(4) Simultaneously with the filing of the marketing program notice with the director, the bureau shall cause a copy of the notice to be mailed by registered or certified mail to each owner of a transient facility located in the assessment district specified in the notice in care of the respective transient facility. In assembling the list of owners to whom the notices shall must be mailed, the bureau shall use any data which is reasonably available to the bureau, including, but not limited to, the short-term rental database as that term is defined in section 2 of the short-term rental regulation act.
(5) The form of the marketing program notice, in addition to the information required by subsections (1), (2), and (3), shall must set forth the right of referendum prescribed in subsection (6).
(6) The assessment set forth in the notice shall become becomes effective on the first day of the month following the expiration of 40 days after the date the notice is mailed, unless the director, within the 40-day period, receives written requests for a referendum by owners of transient facilities located within the assessment district representing not less than 40% of the total number of owners or not less than 40% of the total number of rooms in all the transient facilities. For purposes of this subsection and subsection (7), a dwelling offered as a short-term rental is considered 1 room.
(7) If the director receives referendum requests in the time and number set forth in subsection (6), the director shall cause a written referendum to be held by mail or in person, as the director chooses, among all owners of transient facilities in the assessment district within 20 days after the expiration of the 40-day period. For the purposes of the referendum, each owner of a transient facility shall have has 1 vote for each room in each of the owner's transient facilities within the assessment district. If a majority of votes actually cast at the referendum approve the assessment, as proposed by the bureau in its marketing program notice, the assessment shall become becomes effective as to all owners of transient facilities located in the assessment district on the first day of the month following expiration of 30 days after certification of the results of the referendum by the director. If a majority of votes actually cast at the referendum are opposed to the assessment, the assessment shall does not become effective. If the assessment is defeated by the referendum, the bureau may file and serve a new notice of intention if at least 60 days have elapsed from the date of certification of the results of the earlier referendum. Not more than 2 referenda or notices may be held pursuant to or filed under this subsection or filed pursuant to this section in any 1 calendar year. Only 1 assessment may be in existence in an assessment district, or any part of an assessment district, at any 1 time.
Sec. 4. A marketing program may include all or any 1 or more of the following:
(a) Provisions for establishing and paying the costs of advertising, marketing, and promotional programs to encourage convention business and tourism in the assessment district.
(b) Provisions for assisting transient facilities within the assessment district in promoting convention business and tourism.
(c) Provisions for the acquisition of personal property considered appropriate by the bureau in furtherance of the purposes of the marketing program.
(d) Provisions for the hiring of and payment for personnel employed by the bureau to implement the marketing program.
(e) Provisions for contracting with organizations, agencies, or persons for carrying out activities in furtherance of the purposes of the marketing program.
(f) Programs for establishing and paying the costs of research designed to encourage convention business and tourism in the assessment district.
(g) Provisions or programs to assist with or provide child care.
(h) Housing activities.
(i) Provisions clarifying the assessment on room charges for short-term rentals.
Sec. 8. (1) At any time 2 years or more after the effective date of an assessment, and upon on the written request of owners of transient facilities located within the assessment district representing not less than 40% of the total number of owners or not less than 40% of the total number of rooms in all the transient facilities, the bureau shall conduct a referendum on whether the assessment shall be discontinued. The bureau shall cause a written referendum to be held by mail or in person, as the bureau chooses, among all owners of transient facilities in the assessment district within 60 days of the receipt of the requests. For the purposes of the referendum, each owner shall have has 1 vote for each room in each of the owner's transient facilities within the assessment district. If a majority of the total votes eligible to be cast at the referendum supports discontinuance of the assessment, the assessment shall be is discontinued on the first day of the month following expiration of 90 days after the certification of the results of the referendum by the bureau. For purposes of this subsection, a dwelling offered as a short-term rental is considered 1 room.
(2) Passage of a resolution discontinuing the assessment shall does not prevent a bureau from proposing a new marketing program notice during or after the 90-day period, in which case the procedures set forth in section 3 shall must be followed.
(3) If a referendum is conducted under subsection (1), and if a resolution to discontinue the assessment is not adopted, a further referendum on the discontinuation of that assessment shall must not be held for a period of 2 years.
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.
