Major US city's latest tourist tax hike could affect hotel guests: Travel expert weighs in
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.
TRAVELERS MAY FACE YET ANOTHER 'TOURIST TAX' WHEN VISITING CERTAIN CITIES
State Representative Tyrone Carter, who introduced the bill, told Fox News Digital that the money raised will go to Visit Detroit.
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.
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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."
"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.
"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.
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Michelle Bork, vice president of Travelmation, told Fox News Digital that she is concerned about the tourist tax increase.
"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."
"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.