11/08/2017
These top 20 Airbnb cities in Michigan helped fuel nearly $1M in taxes
Wondering how Airbnb's tax collection is going?
Tax collection started July 1, after Airbnb formalized an agreement with Michigan's Department of Treasury to collect the 6 percent use tax it levies on rentals of 30 days or less. Before that, it was up to owners to pay it on their own.
Based on 2016 numbers, at least $1.5 million was expected funnel from Airbnb customers to the state.
Based on the first three months, that projection was way off.
Airbnb sent $960,000 in tax remittance to the state for July, August and September.
The amount " dwarfs even the most aggressive initial projections," according to Airbnb.
Those months corresponded to the high tourism periods in the state, including Labor Day weekend.
There were 168,000 Airbnb guest arrivals to Michigan over that three-month stretch.
During that time, those guests paid $24.6 million to Michigan residents who share their homes or investment properties on Airbnb -- reflecting over 90% growth over the same three-month stretch in 2016.
"This stretch included the largest surge of Airbnb guests to Michigan in the history of the Airbnb platform, on September 1-2," according to a news release. "This happened to coincide with the Michigan State Fair."
The tax collection started amid some backlash about Airbnb rentals.
One community dealing ordinance enforcement on the rentals is Kalamazoo, which said last week that it found 14 properties in violation. The short-term rentals would need to either be in commercially zoned areas or limited residential areas, and they need to be registered as rentals.
Some property owners in popular communities also have complained about the short-term rentals. There's legislation proposed that would ban local governments from banning rentals like Airbnbs. Other communities have come up with new guidelines.
Here are the areas that had the most Airbnb guests in Michigan.
Some of this may not be surprising at all. Michigan's lakeshore towns are popular in summer and through September.
But number 2 on this list may raise some eyebrows. It may not be the first place that many people in Michigan consider a trip destination.
20. Muskegon
This city had 1,396 guest arrivals from July-September.
19. Suttons Bay
This city had 1,402 guest arrivals from July-September.
18. Frankfort
This city had 1,406 guest arrivals from July-September.
17. Spring Lake
This city had 1,421 guest arrivals from July-September
16. Petoskey
This city had 1,597 guest arrivals from July-September.
15. Kalamazoo
This city had 1,732 guest arrivals from July-September.
14. Charlevoix
This city had 1,950 guest arrivals from July-September.
13. Douglas
This city had 2.004 guest arrivals from July-September.
12. Harbor Springs
This city had 2,273 guest arrivals from July-September.
11. Bellaire
This city had 2,628 guest arrivals from July-September.
10. Grand Haven
This city had 2,654 guest arrivals from July-September.
9. Saugatuck
This city had 3,207 guest arrivals from July-September.
8. New Buffalo
This city had 3,539 guest arrivals from July-September.
7. Marquette
This city had 3,961 guest arrivals from July-September.
6. South Haven
This city had 4,531 guest arrivals from July-September.
5. Holland
This city had 5,298 guest arrivals from July-September.
4. Grand Rapids
This city had 5,541 guest arrivals from July-September.
3. Ann Arbor
This city had 8,665 guest arrivals from July-September.
2. Detroit
This city had 13,966 guest arrivals from July-September.
1. Traverse City
This city had 15,348 guest arrivals from July-September.
