Michigan Passes New Rental Car Tax

The Michigan House of Representatives passed on March 18 legislation, which will add a $2.50 daily charge to vehicles rented at airports in Michigan to pay for a state advertising campaign, according to the Petoskey News-Review.

The legislation would immediately loan about $20 million to the Michigan Promotion Fund and repay the balance with revenues from the car rental surcharge. It is aimed at out-of-state visitors who rent cars at or near airports, hotels, transportation facilities and convention halls.

The additional funding would provide state tourism with the revenue needed to purchase national advertising airtime to continue the Pure Michigan campaign.

State Sen. Jason Allen (R-Traverse City) said a rental car surcharge was a good potential option for gathering out-of-state dollars to pay for the campaign, but declined to say whether he would endorse the bill going forward because he had not yet read the specific version of the legislation.

The legislation was authored by state Rep. Gary McDowell (D-Rudyard), who said the bill supports Michigan’s tourism industry while protecting jobs and small businesses.


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