Legislation has been introduced in Lansing that would allow communities to impose a tax on short-term rentals.
State Representative Mark Tisdel of Rochester Hills tells us he spends a lot of time in Port Huron and knows out of town visitors can be a boon for businesses, but they do cost cities when it comes to the use of infrastructure.
“The tourist dollars that they bring in are great, but as you know, tourists don’t treat your town and your neighborhood the same way you do,” Tisdel said. “So there are actual costs there.”
Tisdel’s plan would allow a community to apply a voter-approved 3% tax on short-term accommodations like hotels, motels, and homestays like AirBNBs to help fund essential services. He says the STR industry itself would support the plan.
“It was initially brought to me through one of the short-term rental platforms, and it’s similar to what’s been introduced in other states.”
This legislation is less expansive than an STR package pushed by state Representative Joey Andrews during the last legislative session. That, too, would have allowed for a tax, but it contained additional regulations.
Tisdel says he thinks this smaller compromise has a better shot at getting a floor vote.
