The proposed bill, titled the "Local Excise Tax on Accommodations Act," allows local units of government in Michigan to impose and collect an excise tax on accommodations provided to transient guests, with a maximum rate of 3% of the purchase price. Local governing bodies must enact an ordinance to levy this tax, which requires approval from a majority of qualified electors. The bill outlines the definitions of key terms such as "accommodation," "accommodation provider," and "accommodations intermediary," and establishes the responsibilities of these entities in collecting and remitting the tax. Additionally, it mandates that the Department of Treasury administer and enforce the tax similarly to the existing use tax.

The bill also creates a local accommodations excise tax trust fund to manage the proceeds from the tax, ensuring that funds are allocated to the local unit of government that levied the tax. It includes provisions for reporting requirements, exemptions for certain accommodations based on existing assessments, and penalties for non-compliance. The Department of Treasury is tasked with publishing annual reports detailing the revenues collected and the distribution of funds, while also retaining a small percentage of the collected taxes to cover administrative costs. Overall, the bill aims to provide local governments with a new revenue source while establishing clear guidelines for implementation and oversight.