A new Michigan bill has been passed to raise the tourist tax in an effort to grow the state’s tourism marketing programs.
House Bill 6166 moves to raise taxes applied to hotel/motel and bed and breakfasts (with at least 35 rooms) on guest bills.
Beginning Jan. 1, through Dec. 31, 2030, the tax will jump from 2% to 3.5% with a planned increase to 4% on Jan. 1, 2031.
Tourist Tax Increase: What It Means for Visitors and Locals
Carter also said it’s important to note that this is an “opt-in” opportunity for hotels.
“To go up 1% when you’ve been at 2% for the last 20, 30 years, I don’t think is unreasonable when you look at everything that has taken place,” said Carter.
He added, “it’s not going toward anything other than promoting the [Detroit] area… and all of the things that we have to offer and that takes money to advertise.”
Reflections on the Hike: A Balancing Act
“I thought it was great, especially after the success of the NFL draft, to have so many people from all around the country come here and just get that new perspective, an idea of what Detroit looks like,” said Carter.
More than 775,000 people visited the Detroit area last April for the NFL draft, according to Visit Detroit.
While the idea of a tax hike may evoke feelings of frustration among some, it’s equally important to see it through a constructive lens. Could this raise be a justifiable price for the opportunity to showcase the beauty, culture, and vibrancy that the city exudes?
“We’re never going to make everybody happy. But I think that 1% and opt in is also the thing. If you don’t want to join, you don’t have to. It’s not mandatory,” Carter shared.
Local Opinions: A Double-Edged Sword
“I lived in Michigan for 27 years and would regularly travel to various beautiful destinations around the state,” said Bork.
She added, “By increasing the tourism tax, you are basically charging people who already live there to visit their own state.”
This sentiment is not isolated. Many Michiganders cherish their splendid lakes, evergreen forests, and the intriguing history of places like Ann Arbor. Yet, if the cost to experience their own backyard escalates, will they continue to partake in these joys?
“Most people who visit Michigan are from the state or the surrounding areas. If it becomes cheaper to visit other places, the state of Michigan could lose visitors and revenue which would be heartbreaking to local businesses,” said Bork.
The bill is currently with Governor Gretchen Whitmer waiting to be signed into law.
As a humorous aside, one might note that Michigan’s tourist tax could soon rival the price of an extra topping on a pizza from Buddy’s Pizza, famous for its deep-dish style, often regarded as a local staple. It’s fascinating to think how a 1% increase in tax could momentarily distract someone from the mouth-watering delicacies that can be found at the Green Dot Stables or Slow’s Bar BQ.
This tax hike might prompt an array of feelings, from acceptance to apprehension, but like the changing seasons in Michigan, the tourism landscape is ever-evolving. Familiar faces will continue to return to their favorite places, with the hope that the new tax can ultimately support even more vibrant experiences in the future.
