Michigan hotels raise tourism tax to 3.5%: will it hurt guests?
- A new Michigan bill was passed to raise the tourist tax on hotels from 2% to 3.5%, effective January 1, 2025.
- The tax increase is intended to support tourism marketing for the Detroit area, including funds for Visit Detroit.
- Experts express concern that the higher tax may deter visitors, particularly residents and those from nearby areas.
In Michigan, a new bill has been passed that significantly impacts the tourism industry by increasing the tax on hotels, motels, and bed and breakfast establishments with at least 35 rooms. The recently introduced House Bill 6166, sponsored by State Representative Tyrone Carter, seeks to elevate the tourism tax from 2% to 3.5%. This adjustment will take effect beginning January 1, 2024, and will remain in place until December 31, 2030, after which the tax is set to increase further to 4% starting on January 1, 2031. The purpose of this tax hike is to generate funds for marketing and promoting the Detroit area to enhance tourism and attract more visitors. According to Representative Carter, the funds raised through this initiative will be allocated to Visit Detroit, an organization dedicated to promoting the area. He emphasized that the decision to adopt the tax increase is an optional choice for hotel operators, suggesting that hotels can