SB1196 Summary

• Establishes the "Pure Michigan funding act" to regulate short-term rentals and impose a 5% excise tax on room charges for short-term rentals statewide.

• Requires short-term rental owners to register with the Department of Licensing and Regulatory Affairs, maintain $1,000,000 liability insurance, and file annual certificates with property and owner information.

• Mandates hosting platforms register with the state, pay annual registration fees ($100 per listing, capped at $50,000 annually), and submit monthly booking transaction reports to the department.

• Distributes excise tax revenue with 98% directed to the Michigan Strategic Fund and Economic Development Corporation for Pure Michigan promotional campaigns, and 2% distributed to local municipalities based on per capita basis for code enforcement and municipal services.

• Prohibits local units of government from enacting regulations that have the total effect of prohibiting short-term rentals, though they may enact reasonable regulations for public health, safety, and welfare.