The bill amends the 1974 PA 263, which governs the imposition and collection of an excise tax on accommodations provided to transient guests in Michigan. Key changes include replacing the term "the business of providing rooms for dwelling, lodging, or sleeping purposes" with "accommodations" and introducing new provisions for the collection, enforcement, and administration of the excise tax by the state. It establishes a local accommodations excise tax trust fund and outlines the responsibilities of marketplace facilitators in collecting and remitting the excise tax on booking transactions. Counties with populations under 600,000 and certain local units are permitted to enact ordinances to levy an excise tax, with specified maximum rates and requirements for uniform application and administration agreements with the state.

Additionally, the bill clarifies the liability of marketplace sellers and facilitators regarding the remittance of excise taxes, providing relief from liability under certain conditions. It mandates that counties or local units of government provide specific information in their ordinances and creates a framework for the use of excise tax revenues, including tourism promotion and ordinance administration. Annual reporting on excise tax rates, revenues, and expenditures is required, with penalties for non-compliance, while the state treasurer is designated to manage the trust fund. Overall, the bill aims to enhance the efficiency of tax collection and ensure accountability in the management of excise tax revenues.

Statutes affected:
House Introduced Bill: 141.861