🎯 STRisker: Bulletin - Michigan
Michigan Lawmakers Propose Local Voter-Approved Excise Tax on Short-Term Rentals
Michigan Weighs a New Tax on Vacation Rentals: Locals Could Get the Final Say
It’s been a long time coming, but Michigan lawmakers are once again tackling the question of how to manage short-term rentals—and this time, taxes are on the table.
On October 29, a new package of bills (HB 5138, 5139, and 5140) was introduced in Lansing that would allow local governments to ask voters whether to approve an excise tax on STR stays. The move is designed to give cities and counties a tool to offset the costs of noise complaints, law enforcement, and community impacts tied to tourist-heavy properties.
Representative Mark Tisdel (R–Rochester Hills) framed it as a fairness issue. “Those expenses have to be covered,” he said, referring to extra policing and neighborhood disturbances tied to short-term guests. His bill wouldn’t create a statewide tax, but rather open the door for local governments to place one on the ballot for residents to decide.
Still, not everyone’s cheering. The Michigan Realtors Association is raising red flags, saying the legislation could further chip away at property rights. “Even in areas where people have been doing this for generations,” said Brad Ward, the association’s vice president, “now suddenly they’ve lost the ability through local zoning to rent out their property.”
Ward also floated an idea that’s gaining some attention: directing part of any new STR tax revenue to the Pure Michigan tourism campaign, ensuring that tourism promotion keeps pace with regulation.
The package has been assigned to the House Economic Competitiveness Committee, which will hold hearings in the coming weeks. Whether this proposal becomes a local control success story or another flashpoint in Michigan’s ongoing STR debate remains to be seen—but one thing’s clear: the battle over who pays for “party weekends” is heating up again.
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