Advocacy News – April 25, 2024
What’s happening: For the past two weeks, the Michigan House Committee on Local Government has heard testimony on a package of bills that significantly hinders the operation of short-term rental (STR) properties in Michigan. Spearheaded by Representative Joey Andrews, House Bills 5437-5446 would do the following:
- Subject STR properties to higher tax rates than hotels.
- Create a registration requirement and database for all STRs.
- Require hosting platforms to collect department certifications on each property listed.
- Create additional safety requirements for STRs and establishes hefty fines for violation.
- Allow local municipalities to determine the number of STRs in a community and revoke STR permits.
What we’re saying: Based on member feedback, the Michigan Chamber expressed opposition to the bills due to the burdensome regulations it would place on STR owners and an unfair tax structure. In a time when Michigan is looking to increase tourism rates and strengthen its economy, these bills as written would disincentivize owners from listing STRs.
What’s next: It remains unclear on how the strong the interest is in moving the legislation forward, but the MI Chamber continue to monitor closely.
For questions or more information, please contact Leah Robinson.