Bill Text: MI HB5444 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Taxation: convention tourism assessments; regional event center financing act; clarify application to short-term rentals and make other modifications. Amends title & secs. 2, 3 & 5 of 2020 PA 340 (MCL 141.1442 et seq.). TIE BAR WITH: HB 5438'24
Spectrum: Partisan Bill (Democrat 21-0)
Status: (Introduced) 2024-02-14 - Per Rule 41 Referred To Committee On Local Government And Municipal Finance [HB5444 Detail]
Download: Michigan-2023-HB5444-Introduced.html
HOUSE BILL NO. 5444
A bill to amend 2020 PA 340, entitled
"Regional event center financing act,"
by amending the title and sections 2, 3, and 5 (MCL 141.1442, 141.1443, and 141.1445).
the people of the state of michigan enact:
An act relating to the promotion of regional convention business and tourism in this state and certain regions of this state; to provide for tourism and convention financing and promotion programs in certain areas; to allow certain activities as part of tourism or convention marketing programs; to provide for imposition and collection of assessments on the owners of transient facilities, including short-term rentals, to support tourism and convention financing and promotion programs; to provide for the disbursement of the assessments; to establish the oversight functions and duties of certain state departments, state agencies, and state employees; and to prescribe penalties and remedies.
(a) "Assessment" means the amount levied against an owner of a transient facility within an assessment district computed by application of the applicable percentage against aggregate room charges with respect to that transient facility during the applicable assessment period.
(b) "Assessment district" means a municipality or a combination of municipalities as described in an event center financing program.
(c) "Assessment revenues" means the money derived from the assessment, including any interest and penalties on the assessment, imposed by this act.
(d) "Clerk" means the clerk of the municipality.
(e) "Event center" means all or any part, or any combination of convention halls, auditoriums, stadiums, music halls, arenas, meeting rooms, exhibit areas, and related public areas owned by a municipality or related event center authority. An event center does not include any facility owned in whole or in part by any private individual, business, or corporation.
(f) "Event center financing program" means a program established by a municipality to plan, develop, design, and construct an event center.
(g) "Event center financing program notice" means the notice described in section 3.
(h) "Municipality" means 1 of the following:
(i) A county having a population of greater than 250,000 and less than 300,000 according to the most recent federal decennial census and that levies an excise tax under 1974 PA 263, MCL 141.861 to 141.867.
(ii) A county having a population of more than 170,000 and less than 180,000 according to the most recent federal decennial census or a county having a population of more than 300,000 and less than 400,000 according to the most recent federal decennial census and that levies an excise tax under 1974 PA 263, MCL 141.861 to 141.867.
(i) "Owner" means the owner of a transient facility located within the assessment district 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.
(j) "Room" means a room or other space provided for sleeping, including the furnishings and other accessories in the room. Room includes, but is not limited to, a dwelling offered as a short-term rental.
(k) "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, and reimbursement of the assessment imposed by this act. For a short-term rental, room charge means the occupancy charge as that term is defined in section 2 of the short-term rental regulation act.
(l) "Short-term rental" means that term as defined in section 2 of the short-term rental regulation act.
(m) (l) "Transient facility" means either of the following facilities, except transient facility does not include a hospital or nursing home:
(i) A building that contains 35 1 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.
(ii) A dwelling offered as a short-term rental.
(n) (m) "Transient guest" means a natural person who occupies a room in a transient facility for less than 30 consecutive days regardless of who pays the room charge.
(o) (n) "Use tax" or "state use tax" means the tax imposed under the use tax act, 1937 PA 94, MCL 205.91 to 205.111.
Sec. 3. (1) A municipality may, by ordinance, establish an event center financing program.
(2) The event center financing program shall must describe the proposed size, location, cost, and financing structure of the proposed event center.
(3) The event center financing program shall must specify the amount of the assessment proposed to be levied, which shall must not exceed 4% of the room charges in the applicable payment period.
(4) Upon On adoption of an ordinance establishing an event center financing program, the clerk of the municipality shall cause an event center financing program notice to be mailed by registered or certified mail to each owner of a transient facility located in the municipality. In assembling the list of owners to whom the notices shall must be mailed, the clerk shall use any data that are is reasonably available to the clerk, including, but not limited to, the short-term rental database as that term is defined in section 2 of the short-term rental regulation act.
(5) The form of the event center financing program notice, in addition to the information required by subsections (1), (2), and (3), shall must set forth the right of referendum prescribed in subsection (6).
(6) Within 30 days after adoption of an ordinance establishing an event center financing program, the clerk of the municipality shall require a written referendum to be held by mail or in person among all owners of transient facilities in each municipality in the assessment district. For purposes of the referendum, each owner shall have has 1 vote for each room in an owner's transient facility. If a majority of votes actually cast at the referendum approve the assessment and the votes actually cast at the referendum represent 60% or more of the total rooms in those transient facilities, as proposed by the municipality in its event center financing program notice, the assessment shall become becomes effective as to all owners of transient facilities located in the assessment district on the first day of the month following expiration of 30 days after certification of the results by the clerk that the event center financing program was approved. If a majority of votes actually cast at the referendum are opposed to the assessment or if less than 60% of the total rooms are represented in the votes actually cast at the referendum, the assessment shall does not become effective. If the assessment is defeated by the referendum, the municipality may file and serve a new notice of intention if at least 60 days have elapsed from the date of certification of the results of the earlier referendum. Not more than 2 referenda or notices may be held pursuant to or filed under this subsection or filed pursuant to this subsection in any 1 calendar year. Only 1 assessment under this act may be in existence in an assessment district, or any part of an assessment district, at any 1 time. For purposes of this subsection, a dwelling offered as a short-term rental is considered 1 room.
(7) The assessment described in this act shall is not be effective before January 1, 2020.
Sec. 5. The revenues derived from the assessment imposed under this act shall be deposited in a special fund to be used by the municipality or by an authority that is organized pursuant to state law only to pay for 1 or more of the following:
(a) The cost of administration and enforcement of the ordinance.
(b) The financing of the acquisition, construction, improvement, enlargement, repair, or maintenance of convention and entertainment facilities, including the payment of principal and interest, when due, on bonds or other evidence of indebtedness issued by the municipality for an event center.
(c) Current or future annual rental payable by the municipality to an authority organized pursuant to state law for the purpose of acquiring, constructing, improving, enlarging, repairing, or maintaining the convention and entertainment facilities and leasing them to the municipality.
(d) Programs to assist with or provide child care.
(e) Housing activities.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 5438 (request no. 03372'23 **) of the 102nd Legislature is enacted into law.
