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Mackinac Center for Public Policy
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2012 House Bill 5245: Increase penalty on delinquent hotel convention tax
  1. Introduced by Rep. Wayne Schmidt (R) on January 17, 2012, 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 House Commerce Committee on January 17, 2012.
      • Reported in the House on March 6, 2012, with the recommendation that the substitute (H-2) be adopted and that the bill then pass.
    • Substitute offered in the House on April 18, 2012, 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 in the House on April 18, 2012.
  2. Passed 83 to 26 in the House on April 19, 2012, 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.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on April 24, 2012.
    • Referred to the Senate Economic Development Committee on April 24, 2012.
      • Reported in the Senate on December 6, 2012, with the recommendation that the substitute (S-2) be adopted and that the bill then pass.

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