Royal Oak, MI Short-Term Rentals: Taxes & Fees (2026)

Royal Oak has no separate short-term rental occupancy tax in its own code; lodging taxes on transient rentals in Michigan run through state statutes, not a City of Royal Oak ordinance. What the City does charge, under § 556-4.A(9) (IPMC § 104.8), is a rental registration fee for each registered property, set by resolution of the City Commission rather than fixed in the ordinance text, and pegged to the cost of processing, inspection, supervision and other related costs of regulation. That fee is never prorated and is never refunded once paid, and it goes into the City Treasury rather than a special fund.

Section 556-4.A(5) adds a carrying charge for owners who miss the deadline: a late charge of $1 per day, per dwelling unit, applies to any registration or inspection fee paid after the due date, which falls 30 days after an existing registration expires or 30 days after the conditions requiring an initial registration are met. All fees and charges are the owner's responsibility, and if the owner does not pay within 30 days of the City's demand, the unpaid balance becomes a lien on the property, collectible the same way the City collects unpaid tax liens.

Because the base fee is set administratively rather than printed in the ordinance, an owner registering a short-term rental should confirm the current resolution amount with Community Development before applying.