By David Fleet
dfleet@mihomepaper.com
Atlas Twp.— At 7 p.m., June 18, the Atlas Township Planning Commission will accept public comment on short term rentals in the community. The purpose of the comment section is to ascertain whether an ordinance is needed to address short term rentals in the township.
“Short term rentals have not been an issue to date,” said Michael Rembor, planning commission chairperson. “But the thought is a preemptive ordinance may be in order. The obvious options seem to be to continue to leave the issue unaddressed, to require a license and set controls on the business activity or to totally outlaw the rental option in the township.”
The short term concerns are a greater concern in other regions of Michigan.
“Lakefront property in Northern Michigan that’s short term rented has tripled land prices,” said Pat Major, planning commission member. “They have destroyed communities. Right now short term rentals less than 30 days is not legal. But if the state comes in and makes it legal it could be an issue.”
Recently House Bill 5438, introduced about two years ago, provided for the registry, regulation of short-term rentals and hosting platforms.
While HB 5438 recently died in the Local Government and Municipal Finance Committee after it had not been signed into law after two years, the foundation of regulation on short term rentals could be reintroduced.
The bill created a statewide short-term rental (STR) database. Local units of government would maintain authority to regulate STRs and would have established an STR excise tax (the rate is 6% of the occupancy charge), with most of the funds collected going back to the municipality where the STR is located. Currently, municipalities have no dedicated revenue source to assist with the public costs of tourism.
In addition, the hosting platforms could not facilitate a booking transaction for a short-term rental if the property is not registered with the state and in good standing with the applicable local unit of government.