Read the full stored bill text
ERE S07036'26_SB0983_INTR_1 ue6sw1
SENATE BILL NO. 983
A bill to permit local units of government to impose and
collect an excise tax on persons engaged in the business of
providing accommodations to transient guests; to provide for the
disposition of the proceeds of the excise tax; to provide for the
collection, enforcement, and administration of the excise tax by
this state; to provide for the creation and administration of
certain funds and the distribution of money from those funds; to
provide for the powers and duties of certain state and local
governmental officers and entities; to allow the promulgation of
rules; and to prescribe penalties.
May 20, 2026, Introduced by Senator CAMILLERI and referred to Committee on Regulatory
Affairs.
2
ERE S07036'26_SB0983_INTR_1 ue6sw1
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act may be cited as the "local excise tax on 1
accommodations act". 2
Sec. 3. As used in this act: 3
(a) "Accommodation" means a room or other space provided for 4
dwelling, lodging, or sleeping purposes, including furnishings and 5
other accessories in the room or other space. Accommodation does 6
not include food and beverages. 7
(b) "Accommodation provider" means a person that owns, 8
operates, controls, or otherwise has the right to offer an 9
accommodation for rent and that offers the accommodation for rent 10
to transient guests. 11
(c) "Accommodations intermediary" means a person that 12
facilitates the rental of an accommodation on behalf of an 13
accommodation provider by listing or advertising the accommodation 14
for rent in a marketplace and, either directly or indirectly 15
through agreements or arrangements with third parties or its 16
affiliates, collecting payment from the transient guest and 17
transmitting that payment to the accommodation provider. 18
(d) "Booking transaction" means when an accommodations 19
intermediary facilitates the rental of an accommodation in a 20
residential dwelling to a transient guest by an accommodation 21
provider by doing both of the following: 22
(i) Listing or advertising the accommodation for rent by the 23
accommodation provider to a transient guest in a marketplace. 24
(ii) Either directly or indirectly through agreements or 25
arrangements with third parties or its affiliates, collecting 26
payment from the customer and transmitting all or a portion of that 27
payment to the accommodations provider. 28
3
ERE S07036'26_SB0983_INTR_1 ue6sw1
(e) "Department" means the department of treasury. 1
(f) "Excise tax" means the excise tax levied by a local unit 2
of government under this act. 3
(g) "Fund" means the local accommodations excise tax trust 4
fund created by section 13. 5
(h) "Local governing body" means the body in which the 6
legislative powers of a local unit of government are vested. 7
(i) "Local unit of government" means a city, village, or 8
township. 9
(j) "Marketplace" means any physical or electronic place, 10
including, but not limited to, a store, booth, website, catalog, 11
television or radio broadcast, dedicated sales software 12
application, or similar platform where an accommodation provider 13
rents or offers to rent an accommodation to transient guests. 14
(k) "Ordinance" means an ordinance enacted by a local unit of 15
government under this act to levy an excise tax. 16
(l) "Person" means a natural person or a partnership, 17
fiduciary, association, corporation, or other entity. 18
(m) "Purchase price" or "price" means that term as defined in 19
section 2 of the use tax act, MCL 205.92, but does not include a 20
charge by an accommodations intermediary for its services to a 21
transient guest. 22
(n) "Residential dwelling" means a cabin, house, trailer, 23
vehicle, or structure, or portion thereof, used, or designed to be 24
used, as a residence or home of 1 or more individuals. 25
(o) "Revenues" means the income derived from the excise tax, 26
plus interest and penalties imposed by this act, levied by an 27
ordinance adopted pursuant to this act. 28
(p) "Transient guest" means a natural person who occupies an 29
4
ERE S07036'26_SB0983_INTR_1 ue6sw1
accommodation for less than 30 consecutive days. 1
(q) "Use tax" means the tax levied under the use tax act. 2
(r) "Use tax act" means the use tax act, 1937 PA 94, MCL 3
205.91 to 205.111. 4
Sec. 5. (1) Beginning July 1, 2027, and subject to the 5
requirements of this section, the local governing body of a local 6
unit of government may enact an ordinance to levy an excise tax on 7
the rental of an accommodation to a transient guest at a rate of 8
not more than 3% of the purchase price for the accommodation. 9
(2) The local governing body of a local unit of government 10
shall not levy an excise tax under this section unless a majority 11
of the qualified electors of that local unit of government voting 12
on the question approve the levy of the excise tax in compliance 13
with section 31 of article IX of the state constitution of 1963. 14
(3) An ordinance described in subsection (1) may be amended or 15
repealed in the same manner as it was adopted. 16
(4) An ordinance described in subsection (1) must comply with 17
subsection (10) and include all of the following: 18
(a) The rate of the excise tax to be imposed, which must be 19
the same for, and applied uniformly to, all types of 20
accommodations. 21
(b) A provision that, except as otherwise provided in 22
subdivision (c), an accommodation provider shall collect the excise 23
tax from the transient guest. 24
(c) A provision that an accommodations intermediary shall 25
collect and remit the excise tax on all booking transactions 26
facilitated by the accommodations intermediary on behalf of an 27
accommodation provider that are subject to the excise tax. 28
(d) A provision that the excise tax will be administered by 29
5
ERE S07036'26_SB0983_INTR_1 ue6sw1
the department in the same manner as the use tax. 1
(e) In accordance with subsection (7), a statement that any 2
conflict between the provisions of the ordinance and this act must 3
be resolved in favor of this act. 4
(f) Any applicable exemptions under subsection (11). 5
(5) Not less than 90 days before an excise tax or a change in 6
the rate of an excise tax takes effect, the local unit of 7
government shall provide the department with a copy of the 8
ordinance that imposes or changes the rate of the excise tax and 9
notify the department of all of the following: 10
(a) The effective date of the excise tax or the change in the 11
rate of the excise tax. 12
(b) The rate of the excise tax. 13
(c) Any exemption required under subsection (11). 14
(6) If the department receives the necessary information as 15
required under subsection (5), the department shall post the 16
information described in subsection (5)(a), (b), and (c) on its 17
website not less than 45 days before the excise tax or a change in 18
the rate of the excise tax takes effect. 19
(7) Any conflict between the provisions of an ordinance 20
enacted by a local unit of government and this act must be resolved 21
in favor of this act. 22
(8) Beginning January 1, 2028, not later than March 15 of each 23
year, a local unit of government levying an excise tax shall file 24
with the department a report that includes all of the following 25
information for the immediately preceding calendar year and, not 26
later than 60 days after the receipt of that report, the department 27
shall publish the report on its website: 28
(a) The rate of the excise tax. 29
6
ERE S07036'26_SB0983_INTR_1 ue6sw1
(b) The total amount of revenues received by the local unit of 1
government. 2
(c) A schedule of all revenues expended by the local unit of 3
government, and the purposes for which the revenues were expended, 4
including the amount of the expenditure and the contracted entity, 5
if any, for the expenditure. 6
(9) If a local unit of government fails to file the report 7
required under subsection (8), the department shall not remit 8
revenues collected by the department under this act to that local 9
unit of government until the report is filed. 10
(10) If a village has an accommodation located within a 11
township that levies an excise tax, then the accommodation is 12
exempt from the excise tax levied by the village. 13
(11) If accommodations in a local unit of government are 14
subject to an assessment under any of the following acts on the 15
effective date of this act, then the following exemptions apply to 16
an excise tax levied under this act in that local unit of 17
government: 18
(a) In a local unit of government with an assessment under the 19
community convention or tourism marketing act, 1980 PA 395, MCL 20
141.871 to 141.880, accommodations in a building that contains 10 21
or more rooms used in the business of providing dwelling, lodging, 22
or sleeping to transient guests are exempt. 23
(b) In a local unit of government with an assessment under the 24
convention and tourism marketing act, 1980 PA 383, MCL 141.881 to 25
141.889, accommodations in a building that contains 35 or more 26
rooms used in the business of providing dwelling, lodging, or 27
sleeping to transient guests are exempt. 28
(c) In a local unit of government with an assessment under the 29
7
ERE S07036'26_SB0983_INTR_1 ue6sw1
regional tourism marketing act, 1989 PA 244, MCL 141.891 to 1
141.900, accommodations in a building that contains 10 or more 2
rooms used in the business of providing dwelling, lodging, or 3
sleeping to transient guests are exempt. 4
(d) In a local unit of government with an assessment under the 5
convention and tourism promotion act, 2007 PA 25, MCL 141.1321 to 6
141.1328, accommodations in a building that contains 35 or more 7
rooms used in the business of providing dwelling, lodging, or 8
sleeping to transient guests are exempt. 9
(e) In a local unit of government with an assessment under the 10
regional convention and tourism promotion act, 2010 PA 254, MCL 11
141.1431 to 141.1437, accommodations in a building that contains 2 12
or more rooms used in the business of providing dwelling, lodging, 13
or sleeping to transient guests are exempt. 14
(f) In a local unit of government with an assessment under the 15
regional event center financing act, 2020 PA 340, MCL 141.1441 to 16
141.1445, accommodations in a building that contains 35 or more 17
rooms used in the business of providing dwelling, lodging, or 18
sleeping to transient guests are exempt. 19
(12) An exemption under subsection (11)(a), (b), (c), (d), 20
(e), or (f) applies only while the assessment described in 21
subsection (11)(a), (b), (c), (d), (e), or (f) remains in effect. 22
Sec. 7. (1) The department is vested with all the powers, 23
duties, functions, responsibilities, and jurisdiction to 24
administer, collect, and enforce any excise tax enacted pursuant to 25
this act. The department shall not charge to or collect from a 26
taxpayer any amount not otherwise authorized by law in conjunction 27
with the collection of tax authorized by this act. 28
(2) The department shall administer, enforce, and collect the 29
8
ERE S07036'26_SB0983_INTR_1 ue6sw1
excise tax in the same manner as the use tax is administered, 1
enforced, and collected under the use tax act and 1941 PA 122, MCL 2
205.1 to 205.31, except that if the use tax act or 1941 PA 122, MCL 3
205.1 to 205.31, and this act conflict, this act applies. 4
(3) The department may promulgate rules to implement this act 5
pursuant to the administrative procedures act of 1969, 1969 PA 306, 6
MCL 24.201 to 24.328. 7
(4) Information obtained pursuant to a provision in this act 8
or the applicable ordinance or through any return, investigation, 9
hearing, or verification required or authorized by this act or the 10
applicable ordinance is confidential, except for official purposes 11
in connection with the enforcement of an excise tax authorized by 12
this act or the use tax act or pursuant to a proper judicial order. 13
A person that divulges or uses this confidential information, 14
except for official purposes in connection with the enforcement of 15
an excise tax authorized by this act or the use tax act or pursuant 16
to a proper judicial order, is guilty of a violation of the 17
ordinance punishable by a fine of not more than $5,000.00, 18
imprisonment for not more than 5 years, or both. Additionally, if 19
the offense is committed by an employee of this state or of a local 20
unit of government, the person must be dismissed from office or 21
discharged from employment on conviction. 22
(5) In computing the amount of tax payment required for any 23
month from a taxpayer that collects and remits an excise tax 24
authorized by this act from the transient guest under this act, the 25
taxpayer tax may deduct an amount equivalent to the amount provided 26
by section 4f(1)(a) of the use tax act, MCL 205.94f. 27
Sec. 9. (1) Except as otherwise provided in this section, an 28
accommodations intermediary that has nexus with this state under 29
9
ERE S07036'26_SB0983_INTR_1 ue6sw1
subsection (7) shall collect and remit the excise tax authorized by 1
this act on booking transactions facilitated by the accommodations 2
intermediary, regardless of whether the accommodations intermediary 3
makes only booking transactions or makes a combination of booking 4
transactions and direct transactions. 5
(2) If an accommodations intermediary is required to remit the 6
excise tax under subsection (1), the department shall audit only 7
the accommodations intermediary for booking transactions and shall 8
not audit an accommodation provider for booking transactions unless 9
the accommodation provider fails to provide the accommodations 10
intermediary with sufficient information to the extent that the 11
accommodations intermediary is not liable under subsection (3). 12
(3) An accommodations intermediary is relieved of liability 13
under this section for failure to remit the correct amount of 14
excise tax to the extent that the accommodations intermediary 15
demonstrates, to the satisfaction of the department, that the 16
failure was due to incorrect or insufficient information given to 17
the accommodations intermediary by the accommodation provider. The 18
relief under this subsection does not apply if the accommodation 19
provider is an affiliate of the accommodations intermediary. 20
(4) An accommodations intermediary is relieved of liability 21
under this section if the accommodations intermediary demonstrates, 22
to the satisfaction of the department, that the excise tax was paid 23
to the department by the accommodation provider or that the excise 24
tax was not due because of an exemption under this act. 25
(5) A taxpayer is relieved of liability under this act for 26
failure to remit the correct amount of excise tax to the extent 27
that the taxpayer collects the rate of tax published by the 28
department under section 5(6). 29
10
ERE S07036'26_SB0983_INTR_1 ue6sw1
(6) An accommodation provider is not liable for the excise tax 1
on booking transactions facilitated by an accommodations 2
intermediary required to remit tax under subsection (1) unless the 3
accommodation provider fails to provide the accommodations 4
intermediary with sufficient information to the extent that the 5
accommodations intermediary is not liable under subsection (3). 6
(7) If a person is an accommodations intermediary and 7
facilitates either of the following, the person has nexus with this 8
state for purposes of this act: 9
(a) Not less than $100,000.00 in accommodation rentals in this 10
state in the previous calendar year. 11
(b) 200 or more separate transactions for rentals of 12
accommodations in this state in the previous calendar year. 13
(8) The applicable excise tax due on rental transactions that 14
are not booking transactions facilitated by an accommodations 15
intermediary required to remit the excise tax under subsection (1) 16
must be collected and remitted by the accommodation provider. 17
(9) As used in this section: 18
(a) "Affiliate" means an affiliated person as that term is 19
defined in section 5a of the use tax act, MCL 205.95a. 20
(b) "Direct transaction" means the rental of accommodations on 21
one's own behalf or on behalf of an affiliate rather than 22
facilitated for another person. 23
(c) "Rental transaction" means any rental of accommodations, 24
including a direct transaction, a booking transaction, or another 25
facilitated rental of an accommodation. 26
Sec. 11. Beginning January 1, 2028, not later than April 15 of 27
each year, the department shall publish a report on the 28
department's website that includes all of the following information 29
11
ERE S07036'26_SB0983_INTR_1 ue6sw1
for the immediately preceding calendar year for each local unit of 1
government that levies an excise tax: 2
(a) Total revenues collected, including all of the following 3
information: 4
(i) The amount of revenues collected on rental transactions of 5
accommodations in residential dwellings in that local unit of 6
government. 7
(ii) The amount of revenues collected on rental transactions of 8
accommodations in nonresidential dwellings in that local unit of 9
government. 10
(b) The amount of exempt transactions under section 5(11). 11
Sec. 13. (1) The local accommodations excise tax trust fund is 12
created in the state treasury. 13
(2) Except as otherwise provided in subsection (6), the state 14
treasurer shall deposit money and other assets received under this 15
act in the fund. The state treasurer shall direct the investment of 16
money in the fund and credit interest and earnings to the fund. 17
Money and other assets deposited in the fund attributable to a 18
specific excise tax levied by a specific local unit of government 19
must be accounted for separately within the fund and must not be 20
used to make payments to a local unit of government other than the 21
local unit of government that levied the excise tax. 22
(3) Except as otherwise provided in subsection (5), not later 23
than 30 days after their due date, the department shall remit 24
excise taxes, interest, penalties, and fees collected by the 25
department to the local unit of government that levied the excise 26
tax. The local unit of government shall allocate the money received 27
under this subsection to its general fund. 28
(4) Except as otherwise provided in subsection (5), if the 29
12
Final Page
ERE S07036'26_SB0983_INTR_1 ue6sw1
department does not provide a remittance to a local unit of 1
government by the date required under subdivision (3), the 2
department shall pay to the local unit of government interest on 3
the amount of the delinquent remittance at a rate equal to the rate 4
of interest accrued on the common cash fund of this state during 5
the period the remittance is delinquent. 6
(5) If a local unit of government fails to file the report 7
required by section 5(8), the department shall not remit excise 8
taxes, interest, penalties, or fees collected by the department to 9
that local unit of government until the report is filed. 10
(6) The department may retain 1% of the excise taxes collected 11
to cover the cost of collection, enforcement, and administration, 12
and that portion must be deposited into the state general fund. 13
(7) The department is the administrator of the fund for audits 14
of the fund. 15
(8) The department shall expend money from the fund only for 1 16
or more of the following purposes: 17
(a) To remit excise taxes, interest, penalties, and fees 18
collected by the department to the local unit of government that 19
imposed the excise tax in accordance with this act. 20
(b) To pay claims for refund of an excise tax imposed under 21
this act. 22
(9) Money in the fund at the close of the fiscal year remains 23
in the fund and does not lapse to the general fund. 24
(10) This state may not borrow money from the fund. 25