A new bill has been passed in Michigan to increase tourism taxes in an effort to grow the state’s tourism marketing programs.
House Bill 6166 seeks to increase taxes on hotel/motel and bed and breakfast establishments (with at least 35 rooms) on guest accounts.
From January 1 to December 31, 2030, the tax will increase from 2% to 3.5% with a planned increase to 4% on January 1, 2031.
TRAVELERS MAY HAVE ANOTHER ‘TOURIST TAX’ WHEN VISITING CERTAIN CITIES
State Rep. Tyrone Carter, who introduced the bill, told Fox News Digital that the money raised will go to the United States Visit Detroit.
A new law has been passed in Michigan that allows hotels to increase their occupancy tax to 3.5%. (iStock)
Carter also said it’s important to note that this is an “opt-in” option for hotels.
“To go up 1% when you’ve been at a 2% level for the last 20, 30 years, I don’t think it’s unreasonable when you look at everything that’s happened,” Carter said.
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He added, “It’s not about anything other than promoting the (Detroit) region… and all the things we have to offer that need advertising.”
Last April, Detroit attracted more than 775,000 visitors for the NFL draft. (AP Photo/Paul Sancya)
“I loved it, especially after the success of the NFL draftto have so many people from all over the country come here and just get that new perspective, a sense of what Detroit looks like,” Carter said.
More than 775,000 people visited the Detroit area last April for the NFL draftaccording to Visit Detroit.
“We will never make everyone happy. But I think 1% and opt-in is also the right thing. If you don’t want to participate, you don’t have to. It’s not mandatory,” says Carter.
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Michelle Bork, vice president of Travelmation, told Fox News Digital that she is concerned about the tourist tax increase.
Michigan State Representative Carter told Fox News Digital that the money will go toward promoting tourism in the Detroit area. (Roberto Machado Noa/LightRocket)
“I lived in Michigan for 27 years and traveled regularly to several beautiful destinations throughout the state,” Bork said.
She added: “By raising the tourism tax you are essentially charging people who already live there to visit their own state.”
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‘Most people who visit Michigan are from the state or surrounding areas. If it becomes cheaper to visit other places, the state of Michigan could lose visitors and revenue, which would be heartbreaking for local businesses,” Bork said.
The bill is currently before the governor Gretchen Whitmer waiting to be signed into law.
