HOUSE BILL NO. 4590
May 15, 2019, Introduced by Rep. Cambensy and
referred to the Committee on Local Government and Municipal Finance.
the people of the state of michigan enact:
Sec. 1. This act shall be known and may be cited as the "tourism reinvestment excise tax act".
(a) "Excise tax" means the excise tax levied by a qualified county under section 3.
(b) "Owner" means the owner of a transient facility located within the qualified county or, if the transient facility is operated or managed by a person other than the owner, then the operator or manager of that transient facility.
(c) "Qualified county" means a county that adjoins a Great Lake with a population as follows:
(i) Of more than 64,000 and less than 70,000 according to the most recent decennial census.
(ii) Of more than 9,200 and less than 9,750 according to the most recent decennial census.
(iii) Of more than 7,500 and less than 8,600 according to the most recent decennial census.
(iv) Of more than 6,000 and less than 6,750 according to the most recent decennial census.
(d) "Room" means a room or other space provided for sleeping.
(e) "Room charge" means the charge imposed for the use or occupancy of a room, excluding charges for food, beverages, state use tax, telephone service or like services paid in connection with the charge.
(f) "Transient facility" means a building that contains 2 or more rooms used in the business of providing dwelling, lodging, or sleeping to transient guests, whether or not membership is required for the use of the rooms. A transient facility shall not include a hospital or nursing home.
(g) "Transient guest" means a person who occupies a room in a transient facility for less than 30 consecutive days regardless of who pays the room charge for the room.
(h) "Use tax" means the tax imposed under the use tax act, 1937 PA 94, MCL 205.91 to 205.111.
Sec. 3. (1) Subject to subsection (3), a qualified county may levy, collect, and administer an excise tax on the owners of a transient facility used in the business of providing dwelling, lodging, or sleeping to a transient guest in that qualified county.
(2) The excise tax described in subsection (1) shall not exceed 5% of the room charge for the transient facility.
(3) A qualified county shall not levy an excise tax described in subsection (1) unless a majority of the voters of that county voting on that question approve the levy of the excise tax described in this section.
(4) The excise tax levied under this act shall be administered by the qualified county that levied the excise tax.
(5) A qualified county levying an excise tax under this act may provide in the ordinance or resolution for 1 or more of the following:
(a) The adoption and enforcement of rules to apply, interpret, effectuate, and administer the excise tax.
(b) The prescribing and furnishing to taxpayers of forms, instructions, manuals, and other materials necessary for enforcement of the excise tax and the auditing of excise tax returns in cooperation with the department of treasury.
(c) The examination by the qualified county or the department of treasury, or 1 of their agents, 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 or resolution imposing the excise tax.
(e) If the excise tax imposed under this act remains unpaid for more than 90 days, the treasurer of the qualified county may collect the excise tax in the same manner as a delinquent special assessment, along with any associated interest, fees, and costs, under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(6) The excise taxes levied under this act shall be in addition to any other taxes, charges, assessments, or fees.
Sec. 4. (1) The excise tax shall be collected at the same time and in the same manner as the tax imposed under the use tax act, 1937 PA 94, MCL 205.91 to 205.111.
(2) The excise tax imposed by this act shall be collected by the department of treasury under 1941 PA 122, MCL 205.1 to 205.31.
(3) The state treasurer may promulgate necessary rules for the collection of the excise tax under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 5. A taxpayer may reimburse himself or herself by adding the amount of the excise tax to the room charge.
Sec. 6. (1) The proceeds from the collection of the excise tax imposed under this act shall be deposited with the state treasurer and credited to a restricted account for the benefit of the qualified county that levied the tax under section 3. Not later than 60 days following the end of the calendar month in which the proceeds of the excise tax were received by the department of treasury, the proceeds of the excise tax shall be paid to the treasurer of the qualified county that levied the excise tax.
(2) The qualified county shall use the proceeds of the excise tax only for 1 or more of the following:
(a) Public safety expenses related to increased tourism.
(b) Public recreation expenses related to increased tourism.