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HB 6166

Taxation: convention tourism assessments; assessment fee; increase. Amends sec. 3 of 1980 PA 383 (MCL 141.883).

2023-2024 Regular Session Introduced by Tyrone Carter

Raises hotel/motel assessment cap in Wayne/Oakland/Macomb counties to 3.5% (2030) and 4% (2031) to fund Visit Detroit marketing and events.

assigned PA 235'24
#taxation:conventiontourismassessments
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Bill Summary · HB 6166

Summary — HB 6166 / Public Act 235 of 2024

Topic: Taxation — convention tourism assessments (amends MCL 141.883)
Sponsor: Rep. Tyrone Carter | Enacted: Public Act 235 of 2024 (approved Jan 17, 2025; eff. April 2, 2025)

Purpose

To raise the statutory maximum rates for the hotel/motel assessment that funds the metro Detroit convention and tourism bureau (Visit Detroit) so the bureau may collect additional revenue to promote tourism, conventions, and related events in Wayne, Oakland, and Macomb counties.

Key provisions

  • Amends section 3 of the Convention and Tourism Marketing Act (MCL 141.883).
  • Changes the cap on assessments levied by an eligible travel and convention bureau whose principal place of business is in a county with population >1,500,000 (i.e., Wayne County) on transient facility room charges as follows:
    • Through December 31, 2024: cap set at 3% of room charges.
    • January 1, 2025 – December 31, 2030: cap set at 3.5% of room charges.
    • Beginning January 1, 2031: cap set at 4% of room charges.
  • Maintains procedural requirements for filing a marketing program notice, mailed notice to owners, and referendum rights for owners.
    • A referendum may be requested within 40 days by owners representing at least 40% of owners or 40% of rooms. For referenda, each owner has one vote per room.
  • Preserves other statutory limits: only one assessment may be in effect in an assessment district at one time; counties already collecting certain taxes under 1974 PA 263 cannot be included.

Definitions (statutory context)
- “Transient facility”: building with 35 or more rooms used for lodging (excludes hospitals and nursing homes).
- “Room charge”: excludes charges for food/beverages, State use tax, telephone service, and reimbursement of the assessment.

Who is affected

  • Primary: owners/operators of hotels/motels (transient facilities with 35+ rooms) in the assessment district (Wayne, Oakland, Macomb counties).
  • Secondary: hotel/motel guests, since assessments are generally passed through on bills and itemized.
  • Beneficiary: Visit Detroit (the eligible bureau) — additional revenues would fund marketing and event-attraction activities.

Fiscal impact and usage

  • Under the prior 2% cap, assessments generated roughly $18.0 million (most recent reporting).
  • Analyses estimate each 0.1 percentage-point increase ≈ $900,000 in additional revenue; increasing to 3.5% could yield about $13.5 million more; moving to a 4% cap could double that extra amount relative to 2% over time (estimates vary by assumption).
  • Committee testimony indicated Visit Detroit directs ~92% of its revenue to marketing and ~8% to overhead.

Process & timeline

  • Introduced Nov 26, 2024; passed House and Senate December 2024; approved by Governor Jan 17, 2025; filed with Secretary of State Jan 17, 2025; effective date April 2, 2025.
  • Note: Even after the Act’s effective date, a bureau must follow the Act’s notice and referendum procedures before an assessment increase becomes effective in a district.

Policy considerations raised

  • Supporters: higher caps will help attract conventions/events (economic spillovers statewide) and better align Detroit with peer markets.
  • Critics (raised in past debates of similar assessments): assessments are effectively compulsory charges on hoteliers whether or not individual owners want to participate in bureau-funded marketing.

For the statutory text, see MCL 141.883 (as amended by PA 235 of 2024).

Compiled from official sources — confirm details with the bill’s official record.

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