2012 House Bill 5245

Increase penalty on delinquent hotel convention tax

Introduced in the House

Jan. 17, 2012

Introduced by Rep. Wayne Schmidt (R-104)

To increase from 1.5 percent to 10 percent the montly "delinquency charge" imposed on a hotel or motel owner who is late paying a room tax imposed to pay for regional marketing schemes, or to pay the debts of regional convention facilities. (For Detroit metro area lodging facilities this means Cobo Hall debt.)The "delinquency charge" is imposed on top of a 1.5 percent per month interest charge.

Referred to the Committee on Commerce

March 6, 2012

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

April 18, 2012

Substitute offered

To increase the tax from 1.5 percent to 3.0 percent per month instead of increasing to 10 percent.

The substitute passed by voice vote

April 19, 2012

Passed in the House 83 to 26 (details)

To increase from 1.5 percent to 3.0 percent the montly "delinquency charge" imposed on a hotel or motel owner who is late paying a room tax imposed to pay for regional marketing schemes, or to pay the debts of regional convention facilities. (For Detroit metro area lodging facilities this means Cobo Hall debt.)The "delinquency charge" is imposed on top of a 1.5 percent per month interest charge.

Received in the Senate

April 24, 2012

Referred to the Committee on Economic Development

Dec. 6, 2012

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.