2007 House Bill 4261 (Authorize Kent County hotel tax )

Public Act 25 of 2007

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Introduced by Rep. Michael Sak on February 13, 2007, to allow the convention and tourism bureaus in Kent County and Lansing to levy a 2 percent hotel and motel rooms tax to support marketing and promotion programs. This would be on top of existing marketing levies. A referendum of lodging providers would be required if requested by least 40 percent of the owners of "transient facilities" subject to the tax. Providers would have one vote for each room in their facility.
- Referred to the House Commerce Committee on February 13, 2007.
  - Reported in the House on May 8, 2007, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
- Substitute offered in the House on May 8, 2007, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed in the House by voice vote on May 8, 2007.
Passed in the House (64 to 43) on May 8, 2007, to allow the convention and tourism bureaus in Kent County and Lansing to levy a 2 percent hotel and motel rooms tax to support marketing and promotion programs. This would be on top of existing marketing levies. A referendum of lodging providers would be required if requested by least 40 percent of the owners of "transient facilities" subject to the tax. Providers would have one vote for each room in their facility. [Vote Details and Comments]
Received in the Senate on May 9, 2007.
- Referred to the Senate Commerce & Tourism Committee on May 9, 2007.
  - Reported in the Senate on June 6, 2007, with the recommendation that the bill pass.
Passed in the Senate (35 to 3) on June 20, 2007, to allow the convention and tourism bureaus in Kent County and Lansing to levy a 2 percent hotel and motel rooms tax to support marketing and promotion programs. This would be on top of existing marketing levies. A referendum of lodging providers would be required if requested by least 40 percent of the owners of "transient facilities" subject to the tax. Providers would have one vote for each room in their facility. [Vote Details and Comments]
Signed by Gov. Jennifer Granholm on June 28, 2007.

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Comments

Introduced by Rep. Michael Sak on February 13, 2007. Passed in the House (64 to 43) on May 8, 2007. New Comment

1) Propganda [by Anonymous Citizen on May 29, 2007]
This is an article from the Grand Rapids Press regarding this bill/tax/assessment.

Hey Santas, please come to GR; Convention bureau tries to lure more groups to meet in area.
The Grand Rapids Press (Grand Rapids, MI) (May 23, 2007): pC1.

Byline: Mary Radigan / The Grand Rapids Press

GRAND RAPIDS -- Will the Amalgamated Order of the Real Bearded Santas come to Grand Rapids for its annual meeting in 2008? Grand Rapids/Kent County Convention & Visitors Bureau officials are making a list and checking it twice in hopes the organization will make Grand Rapids its choice. At the CVB's 80th annual meeting Tuesday, George Helmstead, vice president of sales, said a successful bid would bring in 1,500 jolly old Saint Nicks with real face hair, booking 3,200 room nights. Another successful bid could bring to DeVos Place the League of the United Latin American Citizens organization in 2010, bringing in more than $1 million in direct spending and 4,900 booked room nights. For this year, hotel reservations are projected to top 125,000 room nights. The bureau wants to expand by creating partnerships and convention/tourism business. A goal for the next two years is to raise $2 million to bolster the annual $3.1 million budget for marketing and advertising. A six-week radio campaign, "Michigan's West Coast -- Pure Michigan," kicked off across the state Monday in a $200,000 collaborative effort between the convention bureau and Travel Michigan. With a "West Side Story" theme, the ad also is running three months in northern Indiana. "The challenge is we are spread too thin, and we need a $5 million budget to compete nationally," Helmstead said. "We only have enough money to run a 13-week campaign for the (overall) Michigan's West Coast promotion, when we should be doing it all year." CVB President Steve Wilson was in Lansing on Tuesday, appearing before a state Senate committee hearing to discuss a proposed 2 percent surcharge on most hotel rooms in Kent County. The measure was passed by the state House earlier this month. Wilson has indicated the CVB would levy only a 1 percent surcharge, which would raise an estimated $1 million. It would be divided among the new West Michigan Sports Commission and CVB programs to promote tourism, suburban meetings and larger conventions. "West Michigan leads the way with bookings and bringing people here," said Kathleen Ponitz, chairwoman of the CVB's board of directors. "We want people to think about the organizations they belong to and about bringing in conventions."

What is the CVB current budget and where is all the money going? Why is there in information booth in downtown Grand Rapids?
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2) There is no Infornation Booth in downtown Grand Rapids [by Anonymous Citizen on May 29, 2007]
There is no Infornation Booth in downtown Grand Rapids.

The CVB closed their facility in 2001 before the "DeVos Place" opened. The "DeVos Place" convention center has a $60,000,000.00 investment from the state of Michigan.

The CVB states a record number of visitors. With out an information booth and a record number of visitors equates to driving without a map and or directions. All that is being offered is yet another website.
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3) Rep. Elsenheimer's "no vote explanation" [by Admin003 on May 9, 2007]
Rep. Elsenheimer, having reserved the right to explain his protest against the passage of the bill, made the following statement:

"Mr. Speaker and members of the House:

When this issue came before the House in the last session, it was limited to the City of Grand Rapids. I supported the bill at that time. Today, we have a bill that has been expanded to include Grand Rapids and Ingham counties, which begs the question as to why we do not open up the same opportunities to other counties throughout the state."

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4) More CVB Money? - No Inforamation Booth Funding [by nativegr on February 18, 2007]
Does anyone know the value of a dollar anymore when it comes to taxation and its uses for the public good? The Grand Rapids/Kent County CVB does not need/deserve any more money. Take a look at their 2007 budget: $3,277,824.00 ($8,890.00 - daily)

Kent County Hotel/Motel Tax $914,165
HOTEL/MOTEL ASSESSMENT $2,140,459
City of Grand Rapids $50,000
Memberships $85,000
Management Fee $77,700
Other Income $10,500
THREE MILLION TWO HUNDRED SEVENTY SEVEN THOUSAND EIGHT HUNDRED AND TWENTY FOUR DOLLARS

Expenditure by Activity
Operations $318,465
Sales $1,639,474
Marketing $1,319,885
Visitors and Information Center $0
Directions and Information Booth $0

- Now they, the CVB, wants MORE $$$$$. Hildebrand legislation did not work in 2006 - Now Sak is trying. Puppets and Strings

The new legislation is calling the new tax:
"convention and tourism promotion act" - not to be confused with the other CURRENT taxes listed above - This is truly a new TAX to benefit the CVB of Grand Rapids/Kent County.

The fact is simple: The CVB closed the Visitors and Information Center in downtown Grand Rapids in 2001 when record economic development was and is being invested in downtown Grand Rapids. I have a letter from the CVB President, Steve Wilson, stating he has no interest in having an information booth in downtown Grand Rapids. He has an old-timers vision in this world of information we live in. He believes the internet is all he needs and people want. I still believe a human is better than a computer - for a human is needed to operate a computer.;

For more information and background please contact me:
Scott Atchison - 616-293-9056 NativeGR@aol.com

Here is a link to the text of the legislation:
www.legislature.mi.gov/documents/2007-2008/billintroduced/House/htm/2007-hIB-4261.htm
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