Michigan House Bill HB5140

Michigan 2025-2026 Regular Session

• Introduced: 10/28/25
• Refer: 10/28/25

Caption

Taxation: hotel-motel; authority to levy an accommodation tax; expand. Amends title & secs. 1, 2, 2a, 3, 4 & 7 of 1974 PA 263 (MCL 141.861 et seq.) & adds secs. 1a, 2b, 2c, 2d & 6a. TIE BAR WITH: HB 5139'25, HB 5138'25

Impact

The enactment of HB 5140 is geared toward enhancing local governmental autonomy regarding tourism-related taxation, thereby potentially increasing revenue streams for counties. The revenues collected through the excise tax can be directed towards a variety of local initiatives, including the maintenance and improvement of convention and entertainment facilities, the incentivization of tourism, and the funding of general government expenses. This targeted financial empowerment is expected to stimulate local economies and bolster the tourism sector considerably.

Summary

House Bill 5140 focuses on empowering counties and local units of government in Michigan to impose and collect an excise tax on accommodations provided to transient guests. The legislation modifies existing statutes to clarify the provisions under which these local entities can enact such taxes, stipulating parameters for funding allocation, administration, and enforcement of said taxes. It also establishes an administration agreement between local governments and the state to streamline the tax collection process, allowing the state treasury to assist in collecting and distributing the generated revenues.

Contention

There are potential points of contention regarding the bill, including concerns over the impact on accommodation providers who may feel burdened by additional taxes. Furthermore, some stakeholders may argue about the effectiveness of local governments in managing the excise tax and whether this could lead to discrepancies in how the funds are utilized across different jurisdictions. The requirement for local governments to file detailed reports on the revenues and their expenditures aims to enhance transparency but may also impose additional administrative burdens on these entities.