HOUSE BILL NO. 4931
August 23, 2023, Introduced by Rep. Skaggs and referred to the Committee on Tax Policy.
A bill to amend 1974 PA 263, entitled
"An act to permit counties to impose and collect an excise tax on
persons engaged in the business of providing rooms for dwelling,
lodging, or sleeping purposes to transient guests; to provide for
the disposition of the revenues thereof; and to prescribe
penalties,"
by amending sections 1, 2, 3, 4, 6, and 7 (MCL 141.861, 141.862,
141.863, 141.864, 141.866, and 141.867), section 2 as amended by
2004 PA 118, section 4 as amended by 2014 PA 284, and section 7 as
amended by 1989 PA 13, and by adding section 2b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 1. As used in this act:
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1 (a) "Accommodations" means the room or other space provided
2 for sleeping, including furnishings and other accessories therein.
3 in the room or other space. Accommodations do not include food and
4 beverages.
5 (b) "Administrator" means the official designated by the
6 county to collect the excise tax and to administer and enforce the
7 ordinance.
8 (c) "Convention and entertainment facilities" means all, or
9 any part, or any combination of convention halls, auditoriums,
10 stadiums, music halls, arenas, aquariums, meeting rooms, exhibit
11 areas, and related public areas.
12 (d) "Excise tax" means the excise tax levied by a county under
13 this act.
14 (e) "Ordinance" means an ordinance enacted by a county under
15 this act to levy, assess, and collect an excise tax.
16 (f) (d) "Person" means a natural person, partnership,
17 fiduciary, association, corporation, or other entity.
18 (g) (e) "Revenues" means the income derived from the excise
19 tax, plus interest and penalties imposed by this act, levied and
20 assessed under an ordinance adopted pursuant to this act.
21 (h) (f) "Transient guest" means a natural person staying less
22 than 30 consecutive days.
23 Sec. 2. (1) The county board of commissioners of a county
24 having that has a population of less than 600,000 persons, 785,000
25 and having that has a city with a population of at least 40,000
26 population not less than 35,000, according to the most recent
27 federal decennial census, may enact an ordinance to levy, assess,
28 and collect an excise tax from all persons engaged in the business
29 of providing rooms for dwelling, lodging, or sleeping purposes,
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1 except in hospitals or nursing homes, to transient guests, whether
2 or not membership is required for the use of the accommodations.
3 (2) If a county meets the requirements of subsection (1) on
4 the date it enacts an ordinance under this act and, after the 1990
5 decennial census, the county has a population of less than 120,000
6 persons and has a city with a population of 35,000 or more,
7 persons, that county may continue to levy, assess, and collect the
8 excise tax under this act until October 1, 1991.
9 (3) If a county described in subsection (2) has any
10 accommodations located within the county that are also located
11 within the boundaries of a city in which the majority of the
12 population of that city reside in an adjoining county, then the
13 accommodation is exempt from the excise tax under this act.levied
14 by the county.
15 (4) If a county described in subsection (2) has any
16 accommodations located within the county that are also located
17 within the boundaries of a city with a population of less than
18 5,000 persons, then the accommodation is exempt from the excise tax
19 under this act.levied by the county.
20 (5) The An ordinance provided by this act may be amended or
21 repealed in the same manner as it was adopted.
22 (6) The excise tax imposed pursuant to this act shall by a
23 county must be at a rate of not more than 5% 10% of the total
24 charge for accommodations subject to this act.
25 (7) If a county meets the requirements of subsection (1) on
26 the date it enacts an ordinance, under this act, the county may
27 continue to levy, assess, and collect the excise tax. under this
28 act.
29 Sec. 2b. A county shall not levy a new or increased excise tax
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1 unless a majority of the qualified electors of that county voting
2 on the question approve the levy of the new or increased excise tax
3 in compliance with section 31 of article IX of the state
4 constitution of 1963.
5 Sec. 3. A county levying a an excise tax pursuant to an
6 ordinance adopted under this act shall provide in the ordinance for
7 all of the following:
8 (a) The effective date of the ordinance, which shall be in
9 accordance must comply with section 5.
10 (b) The rate of the excise tax to be imposed.
11 (c) The rate and manner of the imposition of interest and
12 penalties for delinquency in payment of excise taxes or other
13 violations of the ordinance. The interest imposed on delinquency in
14 payment of the excise tax shall must not be more than 1% per month
15 or fraction thereof of a month of the unpaid excise tax after the
16 due date thereof until paid. The penalty for delinquency in payment
17 of the excise tax when due or other violations of the ordinance may
18 be in addition to the interest but shall must not be more than 5%
19 of the amount of the unpaid excise tax per month or fraction
20 thereof of a month after the due date thereof until paid. However,
21 the penalty shall must not exceed 25% of the unpaid excise tax.
22 (d) The determination and allowance of abatements and refunds.
23 (e) The designation of the administrator of the excise tax and
24 methods of collection.
25 Sec. 4. A county levying a an excise tax under this act may
26 provide in the ordinance for 1 or more of the following:
27 (a) The adoption and enforcement of rules to apply, interpret,
28 effectuate, and administer the ordinance and the purposes of the
29 excise tax.
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1 (b) The prescribing and furnishing to taxpayers of forms,
2 instructions, manuals, and other materials necessary for
3 indorsement of the excise tax and the auditing of tax returns.
4 (c) The examination by the administrator or his the
5 administrator's agent of the books and records of a taxpayer for
6 purposes of determining the correctness of a tax return or
7 information filed, or the determination of any tax liability under
8 this act.
9 (d) The imposition of a fine of not more than $500.00, or
10 imprisonment of not more than 90 days, or both for violation of the
11 ordinance.
12 (e) If the excise tax imposed under this act remains unpaid
13 for more than 90 days, the treasurer of the county may collect the
14 excise tax in the same manner as a delinquent special assessment,
15 along with any associated interest, fees, and costs, under the
16 general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
17 Sec. 6. The excise taxes levied under this act shall be are in
18 addition to any other taxes, charges, or fees.
19 Sec. 7. The revenues derived from the excise taxes imposed
20 pursuant to this act shall must be deposited in a special fund to
21 be used by the county, or by an authority that is organized
22 pursuant to state law, together with other available funds only to
23 pay for 1 or more of the following:
24 (a) The cost of administration and enforcement of the
25 ordinance.
26 (b) The financing of the acquisition, construction,
27 improvement, enlargement, repair, or maintenance of convention and
28 entertainment facilities, including, except as provided in
29 subdivision (e), the payment of principal and interest, when due,
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1 on bonds or other evidence of indebtedness issued by the county for
2 convention and entertainment facilities.
3 (c) Except as provided in subdivision (e), current or future
4 annual rental payable by the county to an authority organized
5 pursuant to state law for the purpose of acquiring, constructing,
6 improving, enlarging, repairing, or maintaining the convention and
7 entertainment facilities and leasing them to the county.
8 (d) The promotion and encouragement of tourist and convention
9 business in the county.
10 (e) The principal and interest, when due, on bonds or other
11 evidence of indebtedness issued by or on behalf of the county for
12 the purpose of financing the construction of a museum, or the
13 current or future rental payable by the county to an authority
14 organized pursuant to state law for the purpose of constructing a
15 museum and leasing it to the county, only if the museum is located
16 in a city with a population of 180,000 or more.
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Statutes affected:
House Introduced Bill: 141.861