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Gov. Whitmer signs bipartisan bill to allow Grand Rapids, Kent County to levy new taxes on hotel stays

Voter approval will be needed for both Kent County and the City of Grand Rapids to levy these new or additional taxes.

GRAND RAPIDS, Mich. — Michigan Governor Gretchen Whitmer signed a bill Tuesday that could bring extra revenue to Kent County and the City of Grand Rapids through taxing hotel stays.

House Bill 5408 lays the groundwork for Grand Rapids to levy a 2% tax on hotel stays, if approved by voters. The bill also allows for Kent County, along with several others, to seek voter approval of raising their current 5% tax rate on hotels and motels to 8%.

"Grand Rapids is one of Michigan’s fastest-growing cities, and this bipartisan legislation will boost its economic development, making Kent County a better place to live, work, and play. Let’s keep revitalizing our downtowns and securing projects that improve quality of life," Whitmer wrote on her Facebook page after signing the bill into law.

The funding could go toward projects like the new amphitheater downtown and the proposed soccer stadium. 

The amphitheater will cost an estimated $184 million, with more than $157 million raised so far from public and private funding. The soccer stadium could cost as much as $175 million. So far, $115 million has been raised.

Both these projects hope to open in early 2026.

The bill was originally passed in November of 2023 with bipartisan support and presented to the governor for signing last month.

Voter approval will be needed for both Kent County and the City of Grand Rapids to levy these new or additional taxes. The proposals could show up on the ballot as soon as Michigan's August primary election.

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