SENATE BILL NO. 671
November 09, 2023, Introduced by Senators ANTHONY and CAMILLERI and referred to the
Committee on Local Government.
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 the title and 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 2a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 TITLE
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1 An act to permit counties and cities to impose and collect an
2 excise tax on persons engaged in the business of providing rooms
3 for dwelling, lodging, or sleeping purposes to transient guests; to
4 provide for the disposition of the revenues thereof; proceeds of
5 the excise tax; and to prescribe penalties.
6 Sec. 1. As used in this act:
7 (a) "Accommodations" means the room or other space provided
8 for sleeping, including furnishings and other accessories therein.
9 in the room or other space. Accommodations do not include food and
10 beverages.
11 (b) "Administrator" means the official designated by the
12 county or city to collect the excise tax and to administer and
13 enforce the ordinance.
14 (c) "Convention and entertainment facilities" means all, or
15 any part, or any combination of convention halls, auditoriums,
16 stadiums, music halls, arenas, meeting rooms, exhibit areas, and
17 related public areas.
18 (d) Excise tax" means the excise tax levied by a county or
19 city under this act.
20 (e) "Ordinance" means an ordinance enacted by a county or city
21 under this act to levy, assess, and collect an excise tax.
22 (f) (d) "Person" means a natural person, partnership,
23 fiduciary, association, corporation, or other entity.
24 (g) (e) "Revenues" means the income derived from the excise
25 tax, plus interest and penalties imposed by this act, levied and
26 assessed under an ordinance adopted pursuant to this act.
27 (h) (f) "Transient guest" means a natural person staying less
28 than 30 consecutive days.
29 Sec. 2. (1) The county board of commissioners of a county
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1 having that has a population of less than 600,000 persons , and
2 having that has a city with a population of at least not less than
3 40,000, population according to the most recent federal decennial
4 census, may enact an ordinance to levy, assess, and collect an
5 excise tax from all persons engaged in the business of providing
6 rooms for dwelling, lodging, or sleeping purposes, except in
7 hospitals or nursing homes, to transient guests, whether or not
8 membership is required for the use of the accommodations.
9 (2) If a county meets the requirements of subsection (1) on
10 the date it enacts an ordinance under this act and, after the 1990
11 decennial census, the county has a population of less than 120,000
12 persons and has a city with a population of 35,000 or more,
13 persons, that county may continue to levy, assess, and collect the
14 excise tax under this act until October 1, 1991.
15 (3) 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 in which the majority of the
18 population of that city reside in an adjoining county, then the
19 accommodation is exempt from the excise tax under this act.levied
20 by the county.
21 (4) If a county described in subsection (2) has any
22 accommodations located within the county that are also located
23 within the boundaries of a city with a population of less than
24 5,000 persons, then the accommodation is exempt from the excise tax
25 under this act.levied by the county.
26 (5) The An ordinance provided by this act described in
27 subsection (1) may be amended or repealed in the same manner as it
28 was adopted.
29 (6) The excise tax imposed pursuant to this act shall by a
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1 county must be at a rate of not more than 5% of the total charge
2 for accommodations subject to this act.
3 (7) If a county meets the requirements of subsection (1) on
4 the date it enacts an ordinance, under this act, the county may
5 continue to levy, assess, and collect the excise tax. under this
6 act.
7 Sec. 2a. (1) Subject to subsection (4), the city board of
8 commissioners of a city that has a population of more than 100,000
9 according to the most recent federal decennial census may enact an
10 ordinance to levy, assess, and collect an excise tax from all
11 persons engaged in the business of providing rooms for dwelling,
12 lodging, or sleeping purposes, except in hospitals or nursing
13 homes, to transient guests, whether or not membership is required
14 for the use of the accommodations.
15 (2) An ordinance described in subsection (1) may be amended or
16 repealed in the same manner as it was adopted.
17 (3) The excise tax imposed by a city under subsection (1) must
18 be at a rate of not more than 3% of the total charge for
19 accommodations subject to this act.
20 (4) The city board of commissioners of a city shall not levy
21 an excise tax under subsection (1) unless a majority of the
22 qualified electors of that city voting on the question approve the
23 levy of the excise tax in compliance with section 31 of article IX
24 of the state constitution of 1963.
25 (5) If a city meets the requirements of subsection (1) on the
26 date it enacts an ordinance, the city may continue to levy, assess,
27 and collect the excise tax.
28 Sec. 3. A county or city levying a an excise tax pursuant to
29 an ordinance adopted under this act shall provide in the ordinance
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1 for all of the following:
2 (a) The effective date of the ordinance, which shall be in
3 accordance must comply with section 5.
4 (b) The rate of the excise tax to be imposed.
5 (c) The rate and manner of the imposition of interest and
6 penalties for delinquency in payment of excise taxes or other
7 violations of the ordinance. The interest imposed on delinquency in
8 payment of the excise tax shall must not be more than 1% per month
9 or fraction thereof of a month of the unpaid excise tax after the
10 due date thereof until paid. The penalty for delinquency in payment
11 of the excise tax when due or other violations of the ordinance may
12 be in addition to the interest but shall must not be more than 5%
13 of the amount of the unpaid excise tax per month or fraction
14 thereof of a month after the due date thereof until paid. However,
15 the penalty shall must not exceed 25% of the unpaid excise tax.
16 (d) The determination and allowance of abatements and refunds.
17 (e) The designation of the administrator of the tax and
18 methods of collection.
19 Sec. 4. A county or city levying a an excise tax under this
20 act may provide in the ordinance for 1 or more of the following:
21 (a) The adoption and enforcement of rules to apply, interpret,
22 effectuate, and administer the ordinance and the purposes of the
23 excise tax.
24 (b) The prescribing and furnishing to taxpayers of forms,
25 instructions, manuals, and other materials necessary for
26 indorsement of the excise tax and the auditing of tax returns.
27 (c) The examination by the administrator or his the
28 administrator's agent of the books and records of a taxpayer for
29 purposes of determining the correctness of a tax return or
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1 information filed, or the determination of any tax liability under
2 this act.
3 (d) The imposition of a fine of not more than $500.00, or
4 imprisonment of not more than 90 days, or both for violation of the
5 ordinance.
6 (e) If the excise tax imposed under this act remains unpaid
7 for more than 90 days, the treasurer of the county the delinquent
8 excise tax may collect the tax be collected in the same manner as a
9 delinquent special assessment, along with any associated interest,
10 fees, and costs, under the general property tax act, 1893 PA 206,
11 MCL 211.1 to 211.155.
12 Sec. 6. (1) The excise taxes levied under this act shall be
13 are in addition to any other taxes, charges, or fees.
14 (2) The excise taxes levied by a city are in addition to any
15 excise taxes levied by a county.
16 (3) The excise taxes levied by a county are in addition to any
17 excise taxes levied by a city.
18 Sec. 7. The revenues derived from the excise taxes imposed
19 pursuant to this act shall must be deposited in a special fund to
20 be used by the county or city, or by an authority that is organized
21 pursuant to state law, together with other available funds only to
22 pay for 1 or more of the following:
23 (a) The cost of administration and enforcement of the
24 ordinance.
25 (b) The financing of the acquisition, construction,
26 improvement, enlargement, repair, or maintenance of convention and
27 entertainment facilities, including, except as provided in
28 subdivision (e), the payment of principal and interest, when due,
29 on bonds or other evidence of indebtedness issued by the county or
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1 city for convention and entertainment facilities.
2 (c) Except as provided in subdivision (e), current or future
3 annual rental payable by the county or city to an authority
4 organized pursuant to state law for the purpose of acquiring,
5 constructing, improving, enlarging, repairing, or maintaining the
6 convention and entertainment facilities and leasing them to the
7 county or city.
8 (d) The promotion and encouragement of tourist and convention
9 business in the county or city.
10 (e) The principal and interest, when due, on bonds or other
11 evidence of indebtedness issued by or on behalf of the county or
12 city for the purpose of financing the construction of a museum, or
13 the current or future rental payable by the county or city to an
14 authority organized pursuant to state law for the purpose of
15 constructing a museum and leasing it to the county or city, only if
16 the museum is located in a city with a population of 180,000 or
17 more.
18 (f) Public safety in the county or city.
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Statutes affected:
Senate Introduced Bill: 141.861