Michigan House Bill HB5445

Michigan 2023-2024 Regular Session

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

Caption

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

Impact

The impact of HB 5445 on state laws includes a clearer definition and process for imposing assessments on transient facilities, thereby enabling local governments and nonprofit tourism bureaus to better fund marketing efforts. This legislative change is designed to generate dedicated revenue streams for promoting local tourism, especially as the landscape for travel and event hosting continues to evolve. Additionally, the bill clarifies regulations around short-term rentals, ensuring they are included in the assessment mechanism, which could lead to increased compliance among these establishments.

Summary

House Bill 5445 aims to amend the existing Convention and Tourism Marketing Act from 1980, enhancing the framework for promoting convention and tourism business within major metropolitan areas of Michigan. The bill stipulates the mechanisms for the collection and disbursement of assessments levied on owners of transient facilities, which include hotels and short-term rentals. A significant aspect of the bill is the emphasis on creating a structured marketing program that can facilitate various promotional activities intended to attract tourists and convention attendees to Michigan's large urban centers.

Contention

Notable contention may arise from the measures regarding the assessment collection and its implementation, particularly from stakeholders in the short-term rental market. Concerns center around the potential financial burden on individual rental owners, who may argue that such assessments could stifle their business operations. Furthermore, the requirement for a referendum process to discontinue an assessment, which necessitates substantial support from transient facility owners, may lead to debates about local governance and representation in decisions affecting their economic interests.