Bill Text: MI HB6161 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Taxation: hotel-motel; local government accommodations excise tax; provide for. Creates new act.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2020-09-03 - Bill Electronically Reproduced 09/02/2020 [HB6161 Detail]
Download: Michigan-2019-HB6161-Introduced.html
HOUSE BILL NO. 6161
September 02, 2020, Introduced by Reps. Wendzel
and Marino and referred to the Committee on Government Operations.
the people of the state of michigan enact:
Sec. 1. This act shall be known and may be cited as the "local government accommodations excise tax act".
(a) "Accommodations" means the room or other space provided to transient guests for dwelling, lodging, or sleeping purposes, including furnishings and other accessories in the room or other space. Accommodations also include the short-term rental of short-term transient facilities. Accommodations do not include food and beverages.
(b) "Administrator" means the official designated by the local unit of government to collect the tax and to administer and enforce the ordinance.
(c) "Governing body" means 1 or more of the following:
(i) The council, commission, or other entity vested with the legislative power of a city or village.
(ii) The township board of a township or charter township.
(iii) The county board of commissioners of a county.
(d) "Local unit of government" or "local unit" means a city, village, township, charter township, or county.
(e) "Person" means a natural person, partnership, fiduciary, association, corporation, or other entity.
(f) "Public recreation facility" means parks, beaches, parkways, wheel ways, nonmotorized or motorized trails, bridlepaths, playgrounds, playfields, bathhouses, comfort stations, swimming pools, boat launches, kayak launches, recreation centers, ice rinks, skateboard parks, dog parks, Nordic and alpine skiing facilities, and other similar recreational facilities, including both supporting infrastructure and wayfinding for those facilities. Public recreation facilities include the operation and equipment used for the operation of the facilities.
(g) "Revenues" means the income derived from the tax, plus interest and penalties imposed by this act, levied and assessed under an ordinance adopted pursuant to this act.
(h) "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.
(i) "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.
(j) "Transient guest" means a natural person staying less than 30 consecutive days.
Sec. 3. (1) The governing body of a local unit of government may enact an ordinance to levy, assess, and collect an excise tax from all persons engaged in the business of providing accommodations, except in hospitals, confinement facilities, or nursing homes, whether or not membership is required for the use of the accommodations.
(2) The ordinance provided by this act may be amended or repealed in the same manner as it was adopted.
(3) The tax imposed under this act shall be at a rate of not more than 5% of the total charge for accommodations under this act.
(4) The levying of the excise tax described in subsection (1) is subject to section 31 of article IX of the state constitution of 1963, and is subject to approval by a majority of the qualified electors of the local unit of government.
Sec. 4. A local unit of government levying a 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 with section 6.
(b) The rate of the tax to be imposed.
(c) The rate and manner of the imposition of interest and penalties for delinquency in payment of taxes or other violations of the ordinance. The interest imposed on delinquency in payment of the tax shall not be more than 1% per month or fraction of a month of the unpaid tax after the due date until paid. The penalty for delinquency in payment of the tax when due or other violations of the ordinance may be in addition to the interest but shall not be more than 5% of the amount of the unpaid tax per month or fraction of of a month after the due date until paid. However, the penalty shall not exceed 25% of the unpaid tax.
(d) The determination and allowance of abatements and refunds.
(e) The designation of the administrator of the tax and methods of collection.
Sec. 5. A local unit of government levying a 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 tax.
(b) The prescribing and furnishing to taxpayers of forms, instructions, manuals, and other materials necessary for indorsement of the tax and the auditing of tax returns.
(c) The examination by the administrator or his or her 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) The tax imposed under this act may be a lien on the premises regardless of whether or not a tenant is responsible for the payment of the tax.
(f) The tax, if delinquent for 6 months or more, may be certified annually by the administrator to the proper tax assessing officer or agency, who shall enter the lien on the next tax roll against the premises in which the accommodations have been provided, and the charges shall be collected and the lien shall be enforced in the same manner as provided for the collection of taxes assessed upon the roll and the enforcement of the lien for the taxes.
Sec. 6. An ordinance adopted under this act shall not become effective before the first day of the month following the expiration of 60 days after the ordinance is adopted.
Sec. 7. The taxes levied under this act shall be in addition to any other taxes, assessments, charges, or fees.
Sec. 8. (1) The revenues derived from the taxes imposed pursuant to this act shall be deposited in a special fund to be used by the local unit of government or by an authority that is organized pursuant to state law, together with other available funds only to pay 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 public recreation facilities, including the payment of principal and interest, when due, on bonds or other evidence of indebtedness issued by the local unit of government for public recreation facilities.
(c) Current or future annual rental payable by the local unit of government to an authority organized pursuant to state law for the purpose of acquiring, constructing, improving, enlarging, repairing, or maintaining public recreation facilities and leasing them to the local unit of government.
(d) The promotion and encouragement of tourist and convention business and public recreation facilities owned or operated by the local unit of government.
(2) A local unit of government may enter into agreements with 1 or more local units of government for the development, finance, and operation of public recreation facilities that benefit the residents of the local unit of government.
