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A new legislation in Michigan has been approved to augment the tourist tax aimed at enhancing the state’s tourism marketing initiatives.
House Bill 6166 seeks to increase taxes levied on hotel/motel and bed and breakfasts (with a minimum of 35 rooms) on guest invoices.
Effective January 1, and continuing until December 31, 2030, the tax will rise from 2% to 3.5%, with a proposed escalation to 4% on January 1, 2031.
TRAVELERS MAY ENCOUNTER ANOTHER ‘TOURIST TAX’ WHEN VISITING CERTAIN CITIES
State Representative Tyrone Carter, who sponsored the bill, informed Fox News Digital that the funds generated would be allocated to Visit Detroit.
A new measure has been authorized in Michigan that would enable hotels to increase their tourism tax to 3.5%. (iStock)
Carter further mentioned that it’s crucial to recognize that this is an “opt in” option for hotels.
“To increase by 1% after being at 2% for the past 20, 30 years, I don’t think is excessive when considering everything that has transpired,” stated Carter.
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He added, “the funds are solely for promoting the [Detroit] region… and showcasing all the attractions we have to offer, which requires funding for advertising.”
Last April, Detroit drew over 775,000 visitors for the NFL draft. (AP Photo/Paul Sancya)
“I thought it was fantastic, particularly following the success of the NFL draft, to welcome so many individuals from across the nation to experience a fresh perspective of Detroit,” expressed Carter.
According to Visit Detroit, over 775,000 individuals visited the Detroit area last April for the NFL draft.
“We can’t satisfy everyone. However, I believe that the 1% increase along with the opt-in aspect is important. If you choose not to participate, you are not obliged to. It’s not compulsory,” shared Carter.
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Michelle Bork, vice president of Travelmation, told Fox News Digital that she has reservations about the increase in tourist tax.
Michigan State Representative Carter informed Fox News Digital that the revenues will be directed toward promoting tourism in the Detroit region. (Roberto Machado Noa/LightRocket)
“I resided in Michigan for 27 years and often explored various stunning locations throughout the state,” noted Bork.
She added, “By raising the tourism tax, you are essentially imposing costs on residents wishing to travel within their own state.”
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“The majority of visitors to Michigan are from the state or nearby regions. If it becomes less expensive to travel to other destinations, Michigan could suffer a decline in visitors and income, which would be devastating to local enterprises,” explained Bork.
The bill is presently awaiting approval from Governor Gretchen Whitmer to be enacted into law.
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