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Breaking down the lodging tax proposal on the Kent County ballots this August

If approved by voters, the proposal would bring the hotel tax in Kent County up from its current 5% to 8%.
Credit: WZZM

KENT COUNTY, Mich. — On Aug. 6, Kent County voters will decide whether or not to approve the Kent County Sports and Entertainment Facilities Proposal. 

The proposal states:

SHALL KENT COUNTY INCREASE THE RATE AT WHICH THE EXCISE TAX IS LEVIED ON ALL PERSONS ENGAGED IN THE BUSINESS OF PROVIDING ROOMS FOR LODGING PURPOSES TO GUESTS STAYING LESS THAN 30 CONSECUTIVE DAYS UNDER PUBLIC ACT 263 OF 1974 AS AMENDED FROM 5% TO 8% OF THE TOTAL CHARGE FOR ACCOMMODATIONS TO BE USED FOR ALLOWABLE USES INCLUDING FINANCING OF THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, ENLARGEMENT, REPAIR, OR MAINTENANCE OF STADIUMS, ARENAS, SPORTS COMPLEXES, AND AQUARIUMS STARTING JANUARY 1, 2025 AND TERMINATING ON THE SAME DAY AS THE COUNTY ORDINANCE ENACTED UNDER PUBLIC ACT 263 OF 1974 AS AMENDED.

But what does that mean?

The option to put this to voters was made available through legislation signed by Governor Whitmer in April.

If approved by voters, it would bring the hotel tax in Kent County up from its current 5% to 8%. Combined with other state and local taxes, this would bring the total tax for a hotel room in Kent County to 18%.

The proceeds of that increased tax, some city leaders have said, would help pay for ambitious new plans to attract people to the area, including plans for a new amphitheater, soccer stadium and possibly an aquarium.

Since the Kent County Board of Commissioners gave the ballot proposal the go-ahead to appear on the August primary ballot at their May 2 meeting, many leaders, particularly in Grand Rapids, have begun drumming a message of support for passing it.

"We have to execute the lodging proposal to raise the hotel-motel tax," said Joshua Lunger, who serves as the Vice President of Government Affairs for the Grand Rapids Chamber. "That is a key public financing component of these big projects and other things in the future."

"Increasing the visitor tax is critical to building these projects and unlocking the benefits that they most certainly will deliver," said Grand Rapids Mayor Rosalynn Bliss.

Three county commissioners expressed concerns with the proposal at their May 2 meeting and voted against putting it on the August ballot.

"I can't help but think about, you know, a grandmother in Byron Center - she wants to have her kids and grandkids come stay nearby for a week and puts them up in a hotel in Byron Township," said District 9 Commissioner Matt Kallman during that meeting. "Like, should that grandma who has no connection to Grand Rapids, never comes here, like, should she be obligated to pay for these things?"

Whether that tax increase is too much, or the right choice, will be decided by voters this August. 

Kent County voters will also vote on an early childhood millage. You can see other proposals and races on your ballot here. 

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