LANSING, Mich. (WZMQ) – A series of bills in Michigan’s House of Representatives would create a framework for cities to regulate short-term rentals.
With the summer tourism season on the way, House Democrats have introduced a bill package that would put a 6% excise tax on short-term rentals.
State Representative for the 109th House District, Jenn Hill, said local control over Airbnb and Vrbo’s is something both community members and municipal leaders have been advocating for.
“I think the biggest concern too is that local units of government don’t see any revenue back from what is a business transaction.” Hill said. “The local units would see revenue come back in order to help support public safety, fire inspections, parks and the other costs that tourism, which we all want, does have costs though, and right now local units of government do not have a way to pay for that extra use.”
Along side the excise tax, the bills would create a state registry for short-term rentals, and allow cities to put a cap on the number of properties that are allowed.
With housing shortages pulling attention across the U.P., Hill said community members have been concerned about the number of homes taken up by short term rentals for years.
Hill’s portion of the bill would allow local units of government to use collected assessments to pay for other housing projects or for child care programs.
“We want to have tourism. it’s a very important industry and business for michigan, but there are costs associated to local government.” Hill said. “90% of Marquette is public beach. who pays for that? residents pay for that on their taxes. we this would help the tourists also make a contribution.”
According to the House Fiscal Agency, if passed, the excise tax could create up to $75 million, most of which would go back to the municipality where the short term rental is located.
The bill is now waiting for another hearing in the House Local Government and Municipal Finance Committee. Similar bills have stalled at this point in the past, but the authors said negotiations are underway to secure the votes needed to pass the legislation this time around.
