Bill Text: MI HB4556 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Taxation; convention tourism assessments; state convention facility development act to include certain short-term rentals; modify. Amends secs. 3 & 4 of 1985 PA 106 (MCL 207.623 & 207.624). TIE BAR WITH: HB 4554'19
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2019-05-07 - Bill Electronically Reproduced 05/02/2019 [HB4556 Detail]
Download: Michigan-2019-HB4556-Introduced.html
HOUSE BILL No. 4556
May 2, 2019, Introduced by Reps. Marino, Brixie and Lilly and referred to the Committee on Commerce and Tourism.
A bill to amend 1985 PA 106, entitled
"State convention facility development act,"
by amending sections 3 and 4 (MCL 207.623 and 207.624), as amended
by 2009 PA 61.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Accommodations" means the room or other space provided to
transient guests for dwelling, lodging, or sleeping, including
furnishings and other accessories, in a facility that is not a
campground, hospital, nursing home, emergency shelter, or community
mental health or community substance abuse treatment facility.
Accommodations do not include food or beverages.
(b) "Commissioner" means the state treasurer.
(c) "Convention facility" means 1 or more facilities owned or
leased by a local governmental unit or metropolitan authority
created under the regional convention facility authority act, 2008
PA 554, MCL 141.1351 to 141.1379, that are any combination of a
convention hall, auditorium, meeting rooms, and exhibition areas
that are separate and distinct and contiguous to each other, and
related adjacent public areas generally available to members of the
public for lease on a short-term basis for holding conventions,
meetings, exhibits, and similar events and the necessary site or
sites, together with appurtenant properties necessary and
convenient for use in connection with the facility. Convention
facility includes a qualified convention facility as defined under
section 5 of the regional convention facility authority act, 2008
PA 554, MCL 141.1355.
(d) "Convention hotel" means a facility used in the business
of providing accommodations that has more than 80 rooms for
providing accommodations to transient guests and that complies with
all of the following:
(i) Located within a county having a population according to
the most recent decennial census of 700,000 or more.
(ii) Located within a county that is 1 or more of the
following:
(A) A county that has a convention facility with 350,000
square feet or more of total exhibit space.
(B) A county that has 2,000 or more rooms to provide
accommodations for transient guests.
(e) "Local governmental unit" means a county, township, city,
village, or a metropolitan authority formed under the regional
convention facility authority act, 2008 PA 554, MCL 141.1351 to
141.1379.
(f) "Person" means a natural person, partnership, limited
partnership, fiduciary, association, corporation, limited liability
company, or other entity.
(g) "Room charge" means the charge imposed for the use or
occupancy of accommodations, excluding charges for food, beverages,
telephone services, the use tax imposed under the use tax act, 1937
PA 94, MCL 205.91 to 205.111, or like services paid in connection
with the charge. Room charge does not include reimbursement of the
assessment imposed by the community convention or tourism marketing
act, 1980 PA 395, MCL 141.871 to 141.880, the convention and
tourism marketing act, 1980 PA 383, MCL 141.881 to 141.889, or this
act.
(h) "Short-term rentals" and "short-term transient facilities"
mean those terms as defined in the Michigan short-term rental
promotion act.
(i) (h)
"Transient guest" means a
natural person staying less
than 30 consecutive days.
Sec. 4. (1) There is hereby levied upon and there shall be
collected from any person engaged in the business of providing
accommodations to transient guests in a short-term rental of a
short-term transient facility or in a convention hotel, whether or
not membership is required, an excise tax at the following rates:
(a) For a convention hotel located within a qualified local
governmental unit under section 9(4), the following:
(i) A rate of 3% of the room charge for short-term rentals of
short-term transient facilities or accommodations in a convention
hotel with 81 to 160 rooms.
(ii) A rate of 6% of the room charge for accommodations in a
convention hotel with more than 160 rooms.
(b) For all other convention hotels not subject to the tax
rates imposed by subdivision (a), the following:
(i) A rate of 1.5% of the room charge for short-term rentals
of short-term transient facilities or accommodations in a
convention hotel with 81 to 160 rooms.
(ii) A rate of 5% of the room charge for accommodations in a
convention hotel with more than 160 rooms.
(2) Beginning with the state fiscal year 1987, a person
engaged in the business of providing accommodations to transient
guests in a convention hotel is exempt from the tax imposed by this
act for any state fiscal year in which appropriations of the tax
collections pursuant to this act from that convention hotel have
not been made for distributions pursuant to section 9 that would be
received by a qualified local governmental unit from the
collections of the tax under this act or section 1207 of the
Michigan liquor control code of 1998, 1998 PA 58, MCL 436.2207,
that the qualified local governmental unit is eligible to receive.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4554 (request no.
01509'19) of the 100th Legislature is enacted into law.
