3% tax on short-term rentals proposed by state representative

LANSING, MI (WKZO AM/FM) – State Representative John Roth is proposing enacting a three-percent tax on short-term rentals in Michigan that are booked online through platforms like VRBO and Airbnb.

Tourism is big business in Michigan and he says the tax would only apply if local voters support it and it would have an opt-out possibility.

Roth says they received a positive response to the bills from the Michigan Municipal League, hotels, and restaurants.

The Michigan Hospitality and Tourism Authority is critical of the bills and says they propose a new “government tax that does nothing to strengthen Michigan’s local businesses or address tax parity.”