Michigan House Bill HB5441

Michigan 2023-2024 Regular Session

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

Caption

Taxation: convention tourism assessments; community convention or tourism marketing act; clarify application to short-term rentals and make other modifications. Amends title & secs. 2, 3, 3a, 4 & 8 of 1980 PA 395 (MCL 141.872 et seq.) & repeals sec. 9 of 1980 PA 395 (MCL 141.879). TIE BAR WITH: HB 5438'24

Impact

If enacted, HB5441 will potentially increase funding for tourism marketing initiatives across Michigan by formalizing a structure for the assessment of transient facilities, including short-term rentals. The legislation defines the criteria for assessment districts and assigns oversight responsibilities to local tourism bureaus, empowering them to develop marketing plans aimed at attracting visitors. This approach aims to optimize resource distribution for tourism promotion and enable municipalities to tap into the economic benefits derived from conventions and visitors, thus enriching local economies.

Summary

House Bill 5441 (HB5441) seeks to amend the Community Convention or Tourism Marketing Act of 1980 by introducing modifications that specifically address the collection of assessments from owners of transient facilities, which include hotels and short-term rentals, to support tourism marketing programs. The proposed changes include clarifications on how these assessments are levied and distributed within designated assessment districts while enhancing the promotional functions of local nonprofit convention and tourism bureaus. A key aspect of the bill is the integration of short-term rental properties into the assessment framework, ensuring that these accommodations contribute to local tourism marketing efforts and fostering equitable participation in the tourism sector.

Contention

Notably, discussions surrounding HB5441 highlight concerns about fairness and burden among facility owners. Critics argue that imposing assessments on short-term rental owners could create financial strains, particularly for smaller operators. Additionally, debates focus on the potential for local tourism bureaus to effectively manage the collected funds and deliver on their promises of increased marketing efficiency. As stakeholders continue to voice their opinions on the appropriateness of these measures, the bill reflects the ongoing need to balance local interests with broader economic development goals within Michigan's tourism sector.