Oakland County, MI Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- MI Use Tax
- 6% (MCL 205.93a)
- County hotel tax
- None
- Hazel Park fee
- $500 annual application
- Clawson fee
- ~$80 per building
- Ferndale fee
- Set by Council resolution
- PRE risk
- Lost if rented >14 days/yr
Summary
Every STR booking of less than 30 days in Oakland County is subject to Michigan's 6% Use Tax under the Use Tax Act (MCL 205.93a). Oakland County does not impose a separate hotel/lodging tax. Municipal STR license fees vary widely: Hazel Park charges a $500 annual application fee; Clawson charges roughly $80 per building under its rental program; Ferndale sets fees by Council resolution with separate residential and non-residential tiers.
Rooms or lodging furnished by hotelkeepers, motel operators, and other persons furnishing accommodations that are available to the public on a commercial basis ... [tax does not apply to] rooms and lodging rented for a continuous period of more than 1 month.
Full Breakdown
MCL 205.93a(1)(b) imposes the 6% Use Tax on 'rooms or lodging furnished by hotelkeepers, motel operators, and other persons furnishing accommodations that are available to the public on a commercial basis,' carving out only stays exceeding one continuous month. Airbnb collects and remits the 6% Michigan Use Tax automatically; VRBO and direct-booking owners must register with the Michigan Department of Treasury (Form 518) and remit monthly or quarterly. Oakland County itself does not levy a transient occupancy / hotel-motel tax, there is no county TOT line item on STR booking receipts. Local STR license fees are the second cost: Hazel Park's $500 fee covers application + inspection; Ferndale provides a partial refund if the unit is rented 14 or fewer days per year (proof required). Property-tax classification can also change, STRs are typically considered commercial use and may lose the Principal Residence Exemption (PRE) under MCL 211.7cc if rented more than 14 days per year.
Violations & Fines
Failure to collect/remit 6% Use Tax: penalty and interest under MCL 205.24, plus possible criminal misdemeanor under MCL 205.27. Operating without a local license: municipal civil infractions up to $500/day. Improper PRE claim: full back-tax recovery plus 1.25% per-month interest under MCL 211.7cc(8).
Frequently Asked Questions
Does Airbnb handle Michigan's 6% tax for me?
Does Oakland County add its own hotel tax?
Will I lose my homestead PRE if I rent on Airbnb?
Sources & Official References
Other rules in Oakland County
How Oakland County compares: Cities with the Highest Short-Term Rental Taxes·Compare Oakland County to another location·View the Michigan short-term rentals overview
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