GRAND RAPIDS, Mich. — Governor Gretchen Whitmer says legislation she signed two weeks ago will help the greater Grand Rapids area continue to grow as a major metropolitan area.
The "Growing Grand Rapids" legislation allows cities and townships in Kent County to collect an elevated hotel tax, if voters approve the increase. Previously, Michigan's accommodations tax act limited the tax rate on hotels and motels to five-percent. Now hotels in Kent County can be taxed up to eight-percent. The City of Grand Rapids could also tax hotels at two-percent, on top of the county tax.
"There's a lot of great things happening in Grand Rapids," said Whitmer.
State Representative John Fitzgerald (D-Wyoming) sponsored the bill with the aim of allowing communities in Kent County to collect a more money from people visiting the area. With the planned development of an amphitheater and soccer stadium in downtown Grand Rapids the hope is there will be more people traveling to West Michigan.
"We really made this in a smart way where we wanted to remain competitive, both regionally and as a state," said Fitzgerald.
"Representative Fitzgerald authored this bill to put more tools in the economic development toolbox," said Whitmer. "We want to put the the ability for the residents of Grand Rapids to help design that."
"This is a policy change that gives people more tools in their local communities to do more, ensure that there's more investment, there's exciting offerings."
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The accommodation tax revenue is generally earmarked to support construction and maintenance costs of convention and entertainment facilities. The coming amphitheater and soccer stadium would both qualify for funds collected through the tax. Any increase in the hotel tax rate requires approval by voters.
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