Legislation would boost tax revenues - create jobs for Michigan
LANSING, Mich., June 5 /PRNewswire-USNewswire/ -- Legislation introduced to provide ongoing funding for the "Pure Michigan" campaign is being applauded by all segments of Michigan's tourism industry; this state's third largest industry. The package of bills is considered crucial as the current one-time placement of $30 million in funding is scheduled to drop over 80% to just $5.7 million on October 1st.
The legislative package consisting of two House bills and two Senate bills includes a temporary car rental assessment to be imposed largely on out-of-state visitors (HB 5017) and the creation of a segregated fund (HB 5018) to hold all revenues generated by HB 5017 and the Senate bills.
The Senate bills (SB 619/620) are designed to set aside sales and use tax revenues from tourism-specific businesses for reinvestment into the "Pure Michigan" campaign. Past studies have shown the State receives an average of $2.86 in new sales tax revenues for every dollar invested into the award-winning promotion campaign. Hearings on the two House bills are scheduled before the House Tourism, Outdoor Recreation and Natural Resources Committee on Tuesday, June 9.
"As Lansing looks to stimulate and grow this state's economy, Michigan's tourism industry is our best, and perhaps, only option," said Steve Yencich, president of the Michigan Lodging & Tourism Association which is spearheading the campaign. "These bills will create new tax revenues and jobs that are simply not feasible in other industries such as manufacturing. That makes passage of the Pure Michigan funding package an important key to Michigan's economic future. We applaud the House's leadership on this issue, and hope the Senate will take prompt action as well."
Based in Lansing, the Michigan Lodging & Tourism Association, (MLTA)is a 104 year old trade association that educates, markets, and advocates on behalf of Michigan's lodging and tourism industries.
SOURCE Michigan Lodging and Tourism Association