GRAND HAVEN, Mich. — Visitors to Michigan's popular lakeshore destinations could face higher costs under new legislation introduced in the state House.
The bipartisan bill package would allow local governments to impose an accommodation tax of up to 3% on hotels, motels and short-term rentals, but only if voters approve a local ballot initiative.
WATCH: Michigan lawmakers propose new lodging tax to help tourist communities
The proposed tax aims to help smaller tourist-heavy communities offset the costs of increased infrastructure demands and essential services during peak seasons.
"There are actual costs associated with short term rental tourists and we just want to provide enabling legislation, give communities the opportunity to generate revenues to offset those very real costs," said Rep. Mark Tisdel (R-Rochester Hills), one of the bill's sponsors.
Currently, lodging visitors in Michigan pay sales tax, local convention and visitors bureau tax, and any other locally mandated fees or assessments. The new accommodation tax would add another layer to these existing charges.
Brian King, who has owned the Looking Glass Beachfront Inn in Grand Haven for nine years, expressed concerns about the potential impact on tourism.
"It is a slippery slope," King said. "If you start stacking on these it could definitely dissuade people."
King pointed to other destinations as examples of how taxes can add up quickly for travelers.
"When you go to Chicago it's 17, 18, 20 percent on top of the room rate," King said. "If you're $200 a night versus $230 or $250 because of the tax that changes things for a lot of people."
Despite his concerns, King said he could support the legislation if implemented fairly and kept within reasonable limits.
"I like the idea of the city's having more control over it versus the state because different cities do have different needs, but yeah I definitely worry about it getting too expensive," King said.
Tisdel acknowledged that any new tax proposal faces skepticism but believes Michigan's tourism appeal will remain strong.
"Anytime you use the word tax, people are going to be concerned," Tisdel said. "Nobody does summers like Michigan. So, tourists will continue to come here."
The bills are still in their early stages and will need to pass out of committee before reaching a House vote.
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