The "Short-Term Rental Act" aims to create a regulatory framework for short-term rentals and hosting platforms in Michigan. It requires the Department of Licensing and Regulatory Affairs to establish a short-term rental database that includes information on rental properties, owners, and compliance with local regulations. Owners must file an annual certificate detailing their contact information, proof of liability insurance, and adherence to local government requirements. Hosting platforms are also mandated to register with the department, collect a 6% statewide excise tax on occupancy charges, and maintain transaction records. The bill includes penalties for violations, with escalating fines for repeat offenses, and establishes a regulatory fund to support the act's administration.

The bill introduces an excise tax on short-term rentals, exempting those with total occupancy charges of $3,000 or less in a calendar year. The tax will be collected alongside the use tax and administered by the department, with provisions ensuring this act takes precedence in case of conflicts. Proceeds from the tax will be allocated to various initiatives, including $600,000 for developing the rental database and annual distributions of $500,000 for administrative costs. The remaining funds will support the Pure Michigan tourism campaign and local governments based on the excise tax collected in their areas. Properties in established assessment districts prior to the act's enactment will be exempt from the tax, while those in newly established districts will not. The act is set to take effect one year after its enactment, pending related legislation.