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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.

Comments

Re: 2012 House Bill 5245 (Impose penalty on delinquent hotel convention tax )  by gregtt on November 30, 2012 
I was hoping you would mention few things about the parking spots as well. I learned to take this factor into account, I always check it after I learned this the hard way. For my summer vacation I am already booked at Gatwick hotel with parking, because having a safe parking space when I'm on holiday is an important deal for me.

Re: 2012 House Bill 5245 (Impose penalty on delinquent hotel convention tax )  by gregtt on November 23, 2012 
I've noticed how companies like Parrot Cay rentals get a loyal clientele in our city because they are fair with their customers and employees. Nobody wants to pay extra for an unnecessary service so i agree with this tax.

Re: 2012 House Bill 5245 (Impose penalty on delinquent hotel convention tax )  by amuss on September 13, 2012 
Yes, hopefully this will raise the ratings of some hotels, as a tourist I am not a fan of this tax, we need some sense of fairness. I recently had the chance to get wet in Bali and it was an awesome experience, I wish I could have so much fun in our country too.


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