HB-5241, As Passed Senate, May 13, 2004                                     

SUBSTITUTE FOR

HOUSE BILL NO. 5241

                                                                             A bill to amend 1974 PA 263, entitled                                             

"An act to permit counties to impose and collect an excise tax on           

persons engaged in the business of providing rooms for dwelling,            

lodging, or sleeping purposes to transient guests; to provide for           

the disposition of the revenues thereof; and to prescribe                   

penalties,"                                                                 

by amending section 2 (MCL 141.862), as amended by 1991 PA 91.              

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 2.  (1) The county board of commissioners of a county                  

2   having a population of less than 600,000 persons, and having a              

3   city of at least 40,000 population may enact an ordinance to                

4   levy, assess, and collect an excise tax from all persons engaged            

5   in the business of providing rooms for dwelling, lodging, or                

6   sleeping purposes, except in hospitals or nursing homes, to                 

7   transient guests, whether or not membership is required for the             

8   use of the accommodations.                                                  

9       (2) If a county meets the requirements of subsection (1) on                 

1   the date it enacts an ordinance under this act and, after the               

2   1990 decennial census, the county has a population of less than             

3   120,000 persons and has a city with a population of 35,000 or               

4   more persons, that county may continue to levy, assess, and                 

5   collect the excise tax under this act until October 1, 1991.                

6       (3) If a county described in subsection (2) has any                         

7   accommodations located within the county that are also located              

8   within the boundaries of a city in which the majority of the                

9   population of that city reside in an adjoining county, then the             

10  accommodation is exempt from the tax under this act.                        

11      (4) If a county described in subsection (2) has any                         

12  accommodations located within the county that are also located              

13  within the boundaries of a city with a population of less than              

14  5,000 persons, then the accommodation is exempt from tax under              

15  this act.                                                                   

16      (5) The ordinance provided by this act may be amended or                    

17  repealed in the same manner as it was adopted.                              

18      (6) The tax imposed pursuant to this act shall be at a rate                 

19  of not more than 5% of the total charge for accommodations                  

20  subject to this act.                                                        

21  (7) If a county meets the requirements of subsection (1) on                 

22  the date it enacts an ordinance under this act, the county may              

23  continue to levy, assess, and collect the excise tax under this             

24  act.