MI HB5017

Establishes the Michigan Promotion Assessment Act, imposing a $2.50 per day assessment on short-term motor vehicle rentals beginning October 1, 2010 through September 30, 2015.

Applies to rentals of vehicles designed for 8 or fewer passengers for periods under 31 days when transactions begin at hotels, commercial airports, transportation facilities, or convention facilities.

Assessment is collected by the Department of Treasury using existing sales and use tax mechanisms, with taxpayers permitted to add the assessment fee to rental charges.

Assessment proceeds, after collection costs, first repay surplus loans to the Michigan Strategic Fund, then fund the Michigan Promotion Fund with excess revenues redirected to the general fund once the promotion fund reaches $40 million.

Assessment decreases by 50 cents annually once the promotion fund exceeds $40 million for a full fiscal year, and ceases entirely after 2 consecutive fiscal years at that threshold; exempts temporary replacement vehicles during repair periods.