Michigan Use Tax on Short-Term Rentals Statewide

Under Michigan's Use Tax Act, MCL 205.93a, all rentals of rooms or lodging for less than 30 continuous days are subject to the 6% state use tax. This applies uniformly to hotels, motels, and short-term rentals statewide. Hosts must register with the Michigan Department of Treasury and file returns. Marketplace facilitators like Airbnb and Vrbo collect and remit Michigan use tax on bookings. Local assessment districts may add convention or accommodations taxes on top.

Failure to register or remit tax results in penalties of 5% per month up to 25%, plus interest. Treasury may assess back taxes plus 100% fraud penalty for willful evasion.