Bill Text: MI HB6026 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Housing: other; short-term rental registry and database; establish. Creates new act. TIE BAR WITH: HB 6027'26
Sponsorship: Moderate Partisan Bill (Democrat 5-1)
Status: (Introduced) 2026-06-03 - Bill Electronically Reproduced 06/02/2026 [HB6026 Detail]
Download: Michigan-2025-HB6026-Introduced.html
HOUSE BILL NO. 6026
A bill to provide for the registry, promotion, and regulation of certain short-term rentals and hosting platforms; to create certain databases; to provide for the powers and duties of certain state and local governmental officers and entities; and to prescribe penalties and remedies.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "short-term rental act".
(a) "Booking transaction" means when a hosting platform, in exchange for compensation, facilitates a short-term rental transaction by directly or indirectly enabling the reservation of a short-term rental or collecting or processing occupancy charges.
(b) "Department" means the department of licensing and regulatory affairs, or its successor.
(c) "Director" means the director of the department.
(d) "Fiscal year" means the fiscal year of this state as described in section 491 of the management and budget act, 1984 PA 431, MCL 18.1491.
(e) "Fund" means the short-term rental regulatory fund created under section 6.
(f) "Hosting platform" means a digital platform, nondigital platform, third-party website, software, online-enabled application, mobile telephone application, or some other similar electronic process that allows any of the following for a short-term rental located in this state:
(i) Collection, processing, or facilitation of occupancy charges, or advertisement, listing, or offer of the short-term rental as available.
(ii) Arranging, booking, reserving, or renting of the short-term rental.
(g) "Hotel charges" means taxes, assessments, fees, or other charges imposed by a local unit of government or applicable tax authority under any of the following acts:
(i) 1974 PA 263, MCL 141.861 to 141.867.
(ii) The state convention facility development act, 1985 PA 106, MCL 207.621 to 207.640.
(iii) 1991 PA 180, MCL 207.751 to 207.759.
(iv) The convention and tourism promotion act, 2007 PA 25, MCL 141.1321 to 141.1328.
(v) The convention and tourism marketing act, 1980 PA 383, MCL 141.881 to 141.889.
(vi) The community convention or tourism marketing act, 1980 PA 395, MCL 141.871 to 141.880.
(vii) The regional tourism marketing act, 1989 PA 244, MCL 141.891 to 141.900.
(viii) The regional convention and tourism promotion act, 2010 PA 254, MCL 141.1431 to 141.1437.
(ix) The regional event center financing act, 2020 PA 340, MCL 141.1441 to 141.1445.
(h) "Hotel condominium" means a group of condominium units or condominium projects rented by a common rental management company for transient rental that may include a reception or check-in desk.
(i) "Local unit of government" means a city, township, village, or county.
(j) "Owner" means the owner of a short-term rental located within this state.
(k) "Short-term rental" means the rental of a single-family dwelling, dwelling units in a building housing 1 to 4 separate dwelling units, including, but not limited to, a duplex, tri-plex, or quadplex, or any dwelling unit or group of units in a condominium projects, for terms of not more than 30 consecutive days. Short-term rental does not include the rental of a hotel, motel, hotel condominium, home, or condominium unit that is located within a resort that offers amenities such as golf, skiing, restaurant facility, or group meeting accommodation where the resort manages the rental of such dwelling units. Short-term rental does not include a bed and breakfast establishment.
(l) "Short-term rental database" means the short-term rental database created in section 3.
(m) "Short-term rental excise tax" or "excise tax" means the statewide excise tax imposed under section 7.
(n) "Use tax" or "state use tax" means the tax imposed under the use tax act, 1937 PA 94, MCL 205.91 to 205.111.
(o) "Zoning jurisdiction" means that term as defined in section 102 of the Michigan zoning enabling act, 2006 PA 110, MCL 125.3102.
Sec. 3. (1) The department shall create and operate a short-term rental database, updated each year, of the information provided in subsection (2). The department may use a database solution that has a proven record of managing short-term rentals in other states or enter into a contract with a third party or a current vendor of another state to create the database required under this subsection. The database created under this section must be accessible to a local unit of government free of charge and meet the following minimum requirements:
(a) Have ongoing monitoring of listings for all jurisdictions throughout this state.
(b) Have an activity dashboard and map to monitor trends.
(c) Allow access to all municipalities for local enforcement efforts.
(d) Be capable of communicating directly with owners of short-term rentals.
(e) Be able to integrate with existing department systems.
(2) Each year in which a short-term rental is offered, the owner shall file with the department a certificate. The department shall create the certificate required under this subsection. On receipt of a certificate from the owner, the department shall assign a registration number to a short-term rental that meets the requirements of this subsection. A certificate received under this subsection must be renewed every 1 year. A certificate filed with the department in accordance with this subsection must contain all of the following information:
(a) Name, current telephone number, email address, and address of the owner of the short-term rental.
(b) Address of the short-term rental, including any unit designation.
(c) Certification that any of the following apply:
(i) The owner has $1,000,000.00 or more liability insurance on the short-term rental.
(ii) The short-term rental is offered through a hosting platform that maintains equal or greater insurance as described under subparagraph (i).
(d) Emergency contact information for the short-term rental, including the contact information of a person or company under contract to manage the short-term rental if the owner is not the manager. For purposes of this act, the emergency contact person must be an individual that is licensed under article 25 of the occupational code, 1980 PA 299, MCL 339.2501 to 339.2518, unless that individual is the owner or immediate family member of the owner of the short-term rental. An emergency contact person must reside or the management company must be located within 30 miles from the short-term rental and must be able to respond to a telephone inquiry or complaint at any time within 60 minutes.
(e) Certification that the owner has complied with all local government requirements where the short-term rental is located.
(f) Certification that the owner has a current and valid permit, license, registration, or other related authorization by the dwelling's local unit of government for its use as a short-term rental, where applicable.
(3) The director shall prescribe the forms necessary for the administration of the short-term rental database.
(4) On request, the department shall share the information provided under subsection (2) with the local unit of government where the short-term rental is located, law enforcement agencies, and members of the public. If the department shares that information provided under subsection (2) under this subsection, the department shall also report the number of complaints received by the department against an owner for a violation of this act and the action taken in response to the complaint, including any investigation to verify the complaint.
(5) The department shall indicate on the short-term rental database that a short-term rental is noncompliant if a local unit of government notifies the department that it revoked the permit, license, registration, or other related authorization by the applicable local unit of government of a short-term rental and its owner for a violation of an ordinance.
(6) If the department uses a database solution that has a proven record of managing short-term rentals in other states or enters into a contract with a third party or a current vendor of another state to create the database required under subsection (1), the selection of that third party or current vendor of another state must be by open, competitive bid process commenced not later than 6 months before the effective date of this act.
Sec. 4. (1) An owner that violates this act is responsible for a civil fine and may be ordered by the department to pay a civil fine as follows:
(a) For a first violation, not more than $1,000.00.
(b) For a second violation, not more than $2,500.00.
(c) For a third or subsequent violation, $5,000.00 for each violation.
(2) A hosting platform that 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 $5,000.00 for each violation.
(3) Fines collected from violations of this act by the hosting platform under this act must be transmitted to the fund. Fines collected from violations of this act by the owner must be transmitted to the local unit of government where the short-term rental is located.
Sec. 5. (1) A hosting platform shall not facilitate booking transactions for a short-term rental located in this state unless the hosting platform is currently and validly registered with the department. The department shall issue a registration number to each hosting platform that does all of the following:
(a) Pays an annual registration fee to be determined by the director. The annual registration fee must be an amount equal to $100.00 per listing for each individual address used for a short-term rental, not to exceed $50,000.00 per year as determined by the department.
(b) Agrees in writing to remove a short-term rental that does not comply with this act, or any ordinance enacted by a local unit of government where the short-term rental is located from its listing, within 5 business days after receiving notification of the noncompliance from the department.
(c) Agrees in writing to assess, collect, remit, and report the excise tax imposed under any tax, fee, or assessment imposed by law, including, but not limited to, any hotel charges on a booking transaction.
(d) Agrees in writing to submit all of the following to the department:
(i) The calendar dates that the short-term rental was rented, along with the nightly rate.
(ii) An itemized list of fees, charges, and any taxes or assessments collected under this act, broken down by county, township, city, and village.
(iii) A report that contains the total number of short-term rentals that were removed from their listings under subdivision (b) in the previous year, the address and registration number of the short-term rental, and the date each short-term rental was removed.
(e) Agrees in writing to obtain a written consent from an owner of a short-term rental, and provide its own written consent, for the disclosure of the records required under subsection (4) to the state treasury and the applicable local unit of government.
(2) Transactions must not be booked for a short-term rental located in this state if 1 or more of the following apply:
(a) Where applicable, the short-term rental and its owner have not been issued a current and valid permit, license, registration, or other related authorization by the applicable local unit of government, or the permit, license, registration, or other related authorization has been refused or revoked, for the dwelling's use as a short-term rental.
(b) A registration number has not been assigned to the short-term rental after the short-term rental owner files the certificate required under section 3(2) with the department.
(3) The department shall adopt by rule, and enforce, standards that relate to all of the following:
(a) The issuance, renewal, suspension, or revocation of the hosting platform registration.
(b) The appeal of the issuance, renewal, suspension, or revocation of the hosting platform registration.
(c) The service of process, notice, and demand.
(4) Notwithstanding any other provision of law or administrative action to the contrary, a hosting platform shall do all of the following as a condition of registration under this section:
(a) Develop and maintain a report, in a manner and form established by the department of treasury, of short-term rental booking transactions facilitated by the hosting platform in connection with short-term rentals located in this state.
(b) Except as otherwise provided in this subdivision, provide the state treasurer monthly with the report for all booking transactions facilitated in the preceding month, including, but not limited to, the calendar dates a short-term rental was rented, along with the nightly rate and the itemized amounts of any taxes, fees, charges, or other assessments collected, to the extent necessary to administer this act. The state treasurer may prescribe filing periods other than monthly for purposes of administrative efficiency.
(c) Subject to applicable laws and except as provided under this subdivision, make the full report described under subdivision (a) available to the department when requested by the director and make all reports and aspects relevant to a particular local unit of government available to its designated representatives where duly requested for the local unit of government's short-term rental regulatory enforcement of its jurisdictional dwellings. A report version made available to the department must not include copies of specific message exchanges between any of the following:
(i) Hosting platform.
(ii) Owner.
(iii) Guest.
(iv) Other person that booked a short-term rental.
(d) Maintain itemized records within the report for a period of 4 years following the end of the calendar year in which the individual booking transaction occurred.
(5) The department of treasury shall audit a hosting platform's report as necessary.
(6) A hosting platform shall remove any short-term rental listing that does not have a state or local registration number.
Sec. 6. (1) The short-term rental regulatory fund is created in the state treasury.
(2) The state treasurer may receive money or other assets required to be paid into the fund under this act or from any other source for deposit into the fund. The state treasurer shall direct the investment of the fund. The state treasurer shall credit to the fund interest and earnings from fund investments.
(3) Money in the fund at the close of the fiscal year must remain in the fund, must not lapse into the general fund, and may be used by the department, upon appropriation, in future fiscal years as prescribed in this section.
(4) The department is the administrator of the fund for auditing purposes.
(5) The department shall expend money from the fund, upon appropriation, to carry out its responsibilities under this act, including, but not limited to, administration of this act, reimbursement for investigation and adjudication of violations under this act, and indemnifying itself for a litigation commenced for a violation of this act.
Sec. 7. (1) Except as otherwise provided in this act, a statewide excise tax, to be known as the short-term rental excise tax, is levied on the owner of a short-term rental in this state.
(2) The rate of the short-term rental excise tax is 6% of the occupancy charge.
Sec. 8. (1) Notwithstanding anything to the contrary in this act, a hosting platform shall collect and remit the short-term rental excise tax due under this act on all booking transactions made by the hosting platform.
(2) A hosting platform is responsible for collecting and remitting the excise tax under subsection (1), regardless of whether the hosting platform owns the short-term rental to which the booking transaction relates and regardless of the number of times the short-term rental is booked.
(3) A hosting platform shall report its direct short-term rental transactions and booking transactions for short-term rentals located in this state in a manner as prescribed by the department.
(4) A hosting platform shall keep a record of each booking transaction involving a short-term rental in this state. The department may audit a hosting platform's records kept under this subsection as necessary. A record of a booking transaction under this subsection must include all of the following information:
(a) The dates rented.
(b) The amount of the occupancy charge.
(c) The amount of short-term rental excise tax collected and remitted.
(d) An itemized statement of any other tax, fee, or assessment imposed, including, but not limited to, any hotel charges.
(5) A hosting platform is relieved of liability under this section for failure to remit the correct amount of excise tax to the extent that the hosting platform demonstrates, to the satisfaction of the department, that the failure was due to incorrect or insufficient information given to the hosting platform by the owner. The relief under this subsection does not apply if the hosting platform is an affiliate of the owner or the information was gathered by the hosting platform as part of the booking process.
(6) A hosting platform is relieved of liability under this section if the hosting platform demonstrates, to the satisfaction of the department, that the short-term rental excise tax was paid to the department by the owner or that tax was not due because of an exemption under this act.
(7) An owner is not liable for the short-term rental excise tax on short-term rental transactions that are booking transactions made by a hosting platform required to remit tax under subsection (1) unless the owner fails to provide the hosting platform with sufficient information to the extent that the hosting platform is not liable under subsection (5).
(8) A hosting platform that makes a booking transaction for a short-term rental located in this state is presumed to have nexus with this state, and this section applies regardless of whether the hosting platform has a physical presence in this state.
(9) As used in this section, "affiliate" means an affiliated person as that term is defined in section 5a of the use tax act, 1937 PA 94, MCL 205.95a.
Sec. 9. A short-term rental owner that has total occupancy charges of not more than $3,000.00 in a calendar year is exempt from the tax under this act.
Sec. 10. (1) The excise tax must be collected at the same time and in the same manner as the use tax.
(2) The department shall administer the excise tax pursuant to 1941 PA 122, MCL 205.1 to 205.31, and this act. If 1941 PA 122, MCL 205.1 to 205.31, and this act conflict, this act applies.
(3) The department shall prescribe the forms necessary for the administration of the excise tax and may promulgate rules to implement this act pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(4) The excise tax is in addition to any other tax, fee, or assessment imposed by law, including, but not limited to, any hotel charges.
Sec. 11. A taxpayer may obtain reimbursement by adding the amount of the excise tax to the occupancy charge of the short-term rental.
Sec. 12. (1) The proceeds from the collection of the excise tax must be deposited in the state treasury, credited to a restricted account, and, on appropriation, distributed in accordance with subsections (2) and (3).
(2) For the first state fiscal year in which the proceeds from the collection of the excise tax are distributed, $600,000.00 must be distributed as a 1-time distribution to the department for costs associated with building the information technology system necessary to create the short-term rental database and the remainder must be distributed as provided in subsection (3).
(3) Subject to subsection (2), each fiscal year, the proceeds from the collection of the excise tax must be distributed as follows:
(a) $500,000.00 to the department for the administration of this act and to cover ongoing costs of the department under this act.
(b) $500,000.00 to the department of licensing and regulatory affairs for the administration of this act.
(c) The balance as follows:
(i) 50% to the Pure Michigan tourism campaign or any successor campaign.
(ii) 50% to the local units of government in which short-term rentals are located. The distribution to a local unit of government under this subparagraph must be calculated by multiplying the total amount available for distribution under this subparagraph by a fraction, the numerator of which is the amount of excise tax collected from short-term rentals located within the zoning jurisdiction of the local unit of government during the fiscal year and the denominator of which is the total amount of all excise taxes collected from all short-term rentals during the fiscal year.
Sec. 13. (1) If a short-term rental property is required to collect and remit an assessment under the community convention or tourism marketing act, 1980 PA 395, MCL 141.871 to 141.880, or the regional tourism marketing act, 1989 PA 244, MCL 141.891 to 141.900, the short-term rental excise tax applies as follows:
(a) If the assessment district was established before the enactment date of this act, the property is exempt from the short-term rental excise tax.
(b) If the assessment district is established on or after the enactment date of this act, the short-term rental property is not exempt from the excise tax under this act.
(2) As used in this section:
(a) "Assessment district" means that term as defined in section 2 of the community convention or tourism marketing act, 1980 PA 395, MCL 141.872, or section 2 of the regional tourism marketing act, 1989 PA 244, MCL 141.892, as applicable.
(b) "Assessment district" means that term as defined in section 2 of the community convention or tourism marketing act, 1980 PA 395, MCL 141.872, or a regional assessment district as that term is defined in section 2 of the regional tourism marketing act, 1989 PA 244, MCL 141.892, as applicable.
Enacting section 1. This act takes effect 1 year after the effective date of this act.
Enacting section 2. The provisions of this act are severable. If any part of this act is declared invalid or unconstitutional, that declaration must not affect the remaining part of this amendatory act.
Enacting section 3. This act does not take effect unless Senate Bill No. ____ (request no. S03777'25) or House Bill No. ____ (request no. H03777'25) of the 103rd Legislature is enacted into law.
