MI HB5048

Expands authority to levy excise taxes on hotel and lodging accommodations to include local units of government (cities and townships) in counties with populations between 600,000 and 775,000.

Local units of government may impose excise taxes at a rate not exceeding 2% of total accommodation charges, subject to voter approval via referendum under the state constitution.

County excise taxes remain capped at 8%, but counties may increase rates above 5% only with voter approval; excise taxes levied by counties and local units are cumulative and separate from each other.

Revenues from excise taxes must be deposited in special funds for administration, convention and entertainment facilities, tourism promotion, and museum construction bonds in cities with populations of 180,000 or more.

Ordinances must specify interest and penalties for delinquent payments, with interest capped at 1% monthly and penalties not exceeding 5% monthly (25% maximum) of unpaid taxes.