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| TAX OUTLINE |
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| TAX DESCRIPTIONS |
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| ACCOMMODATIONS (HOTEL-MOTEL)2 |
LEGAL CITATION: |
M.C.L. 141.861 et seq.; 1974 PA 263.
M.C.L. 207.621-207.640; 1985 PA 106. |
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| YEAR ADOPTED: |
1974 (enabling act for counties under 750,000 which may adopt by ordinance).
1985 (for certain counties over 600,000). |
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| BASIS OF TAX: |
Privilege of engaging in business of providing accommodations. |
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| MEASURE OF TAX (BASE): |
In counties under 600,000 and with a city over 40,000: amount charged transient guests for lodging in any hotel/motel. As of 2006, Calhoun, Genesee, Ingham, Kalamazoo, Kent, Muskegon, Saginaw, and Washtenaw levy the tax.
In counties over 750,000 and with a 350,000 sq. ft. convention facility and/or 2,000 rooms (Wayne, Oakland, and Macomb): amount charged transient guests for lodging in a hotel/motel of over 80 rooms.
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| RATE: |
Rate varies according to the population of the county in which the hotel/motel is located.
In counties under 600,000: not more than 5%, as determined by county. As of 2005, all counties levying the tax, except Washtenaw, charge the maximum rate. Washtenaw levies the tax at a rate of 2%.
Rate further varies if the hotel/motel is located within a "Qualified Governmental Unit," which is defined as a city (Detroit) that is the owner or lessee of a convention facility with 350,000 square feet or more of total exhibit space (Cobo Hall).
In counties over 750,000:
No. Rooms
Available: |
"Qualified
Governmental
Unit"
(Detroit): |
Other Governmental Units
(Wayne, Oakland, Macomb): |
| 81-160 |
3% |
1.5% |
| 161 or more |
6% |
5% |
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| ADMINISTRATION: |
In counties under 600,000: determined by county; collected by county treasurer.
In counties over 750,000: In counties over 750,000: Michigan Department of Treasury, Bureau of Revenue.. |
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| REPORT AND PAYMENT: |
In counties under 600,000: determined by county.
In counties over 750,000: same as Use Tax. |
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| DISPOSITION: |
In counties under 600,000: special fund for use by county or authority organized under state law.
In counties over 750,000: Convention Facility Development Fund for distribution to units of local government. Fiscal-year end excess to General Fund for distribution to qualified units of local government.
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| 2006-07 COLLECTIONS: |
$13,766,548 (1985 PA 106 only)
$18,095,000 (1974 PA 263 only). |
2 Accommodations also are taxed under the Use Tax.
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Last Updated July 21, 2008
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