Taxation: hotel-motel; authority to levy an accommodation tax; expand. Amends title & secs. 1, 2, 2a, 3, 4 & 7 of 1974 PA 263 (MCL 141.861 et seq.) & adds secs. 1a, 2b, 2c, 2d & 6a. TIE BAR WITH: HB 5139'25, HB 5138'25

HB 5140 expands local governments' authority to impose hotel and short-term rental taxes. It allows cities in counties with 600,000-775,000 residents to levy up to 3% on accommodations (previously capped at 2%), while counties under 600,000 residents can tax up to 8% but require voter approval for rates above 5%. The bill directly affects hotels, vacation rentals, and online booking platforms that collect these taxes. Local governments must follow specific voter approval processes and administration rules under the amended law.