HB 6161 Summary

• Permits local units of government (cities, villages, townships, counties) to impose an excise tax on persons providing accommodations to transient guests, excluding hospitals, confinement facilities, and nursing homes.

• Tax rate capped at 5% of total charge for accommodations and requires approval by majority vote of qualified electors in the jurisdiction.

• Ordinance becomes effective no earlier than 60 days after adoption and must include provisions for tax rate, interest/penalties (interest limited to 1% monthly, penalties up to 25% of unpaid tax), abatements, refunds, and tax administration.

• Revenue must be deposited in a special fund used only for administrative costs, public recreation facility acquisition/construction/maintenance, rental payments for recreation facilities, or promotion of tourist/convention business.

• Allows local units to establish liens on properties for unpaid taxes, impose fines up to $500 or 90 days imprisonment for violations, and examine taxpayer records for compliance verification.