MI HB5140

Expands authority for local governments to levy excise taxes on accommodations (lodging) provided to transient guests, allowing villages to impose the tax and increasing the maximum rate for local units from 2% to 3% (counties retain 8% maximum)

Requires marketplace facilitators (online booking platforms) with nexus in Michigan to collect and remit the excise tax on all booking transactions they facilitate, with specific reporting requirements and liability protections

Mandates that counties and local governments enter into administration agreements with the Department of Treasury for state-level collection, enforcement, and administration of new or amended excise taxes

Creates the Local Accommodations Excise Tax Trust Fund to hold collected taxes, with the state retaining up to 8% for Michigan's Pure Michigan tourism campaign and 1% for administrative costs before remitting funds to local governments

Requires annual reporting by January 2027 on excise tax revenues and expenditures, with the department authorized to withhold remittances from non-compliant jurisdictions