Michigan House Bill HB5440

Michigan 2023-2024 Regular Session

• Introduced: 2/13/24
• Refer: 2/13/24
• Refer: 2/14/24

Caption

Taxation: convention tourism assessments; regional tourism marketing act; clarify application to short-term rentals and make other modifications. Amends title & secs. 2, 3, 4, 5, 8 & 9 of 1989 PA 244 (MCL 141.892 et seq.). TIE BAR WITH: HB 5438'24

Impact

The impact of HB5440 includes significant changes to how tourism marketing is funded within Michigan. The bill gives regional marketing organizations the authority to impose fees on transient facility owners, which can include hotels, bed-and-breakfast establishments, and short-term rental properties. This feature is expected to increase the available resources for tourism promotion, allowing regions to develop targeted marketing strategies. Moreover, a referendum process is established whereby facility owners can vote on the discontinuance of assessments, thus ensuring some level of localized control over tax-like levies.

Summary

House Bill 5440 amends the Regional Tourism Marketing Act to enhance tourism initiatives in Michigan. The legislation proposes the creation of tourism marketing programs that can levy assessments on owners of transient facilities, including short-term rentals, as a means to fund promotional activities intended to boost tourism in designated regions. The bill defines various terms and sets the framework for the operations of regional marketing organizations tasked with implementing these programs. Among the goals of the amendments is to streamline the funding process for local tourism efforts and ensure broader participation from facility owners in assessment districts.

Contention

Notable points of contention surrounding HB5440 revolve around the fairness and implications of levying assessments on short-term rental operators. Critics might argue that these assessments could disproportionately impact small property owners and could lead to higher costs for visitors. The requirement for a majority vote from transient facility owners in referendums may also be seen as a potential obstacle for the implementation of necessary tourism initiatives, sparking debates about the balance between economic growth and local governance. Additionally, the definitions of transient facilities and the specific criteria for exempt facilities could become contentious as stakeholders seek to ensure their interests are adequately represented.