Michigan House Bill HB5446

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 promotion act; clarify application to short-term rentals and make other modifications. Amends title & secs. 2, 3, 4 & 8 of 2007 PA 25 (MCL 141.1322 et seq.). TIE BAR WITH: HB 5438'24

Impact

By levying these assessments, the bill creates a structured financing mechanism that allows assessment districts to promote conventions and tourism actively. Owners of transient facilities will contribute a specified percentage of their room charges, which can be no more than 2%, to support marketing initiatives that aim to attract visitors. This ensures that local businesses are financially engaged in promoting the tourism sector, potentially increasing foot traffic and occupancy rates, which are critical for local economies.

Summary

House Bill 5446 aims to amend the Convention and Tourism Promotion Act originally enacted in 2007, focusing on enhancing support for convention business and tourism across Michigan. The bill emphasizes the imposition of assessments on owners of transient facilities, including short-term rentals, to fund various tourism and convention marketing programs. The changes seek to clarify the application of these assessments and streamline their implementation, thereby fostering a more robust tourism economy in designated metropolitan areas within the state.

Contention

There may be contention surrounding the implementation of this bill among transient facility owners, particularly concerning the assessment rates and the perceived benefits of the marketing programs. Some facility owners may view the assessments as an additional tax burden, especially in competitive markets where profit margins are tightening. Furthermore, the bill allows for regular referenda, giving facility owners a voice in whether assessments should continue. This aspect introduces a level of democratic engagement but could also lead to challenges in maintaining steady funding for promotional activities if assessments are frequently contested.