State Representative Joey Andrews is nearing a deal on legislation to regulate short term rentals in Michigan.

Andrews tells us a package of bills he’s been working on for two years now could head to the House floor next week. The legislation would allow municipalities to place a limit on short-term rental homes in their jurisdiction, but not ban them altogether. That’s not all.

“It creates a statewide registry for all the short-term rentals so that we have an easier way to track the activity and identify people that are trying to skirt the ordinances.” Andrews said. “Then there’s a 6% excise tax built in, half of which goes to the local government and the other half that goes to Pure Michigan.”

Andrews says Pure Michigan hasn’t had a dedicated funding source for about ten years, so that idea really appeals to tourism groups that support the campaign. The other half of the tax revenue would stay with local communities so they can recoup the costs that come with having a lot of tourists.

Andrews says he spoke with many local governments while crafting the legislation.

“We’ve been working really closely with Michigan Municipal League and the Townships Association on this the whole time. There’s 800 and some municipalities in Michigan, so I won’t say 100% of them agree with the direction we ended up in, but I would say, the vast majority like the local control approach.”

The final draft of the legislation could advance through a House committee next week and then to the full House. Andrews says its chances of passing in both chambers of the Legislature are good, and a signature from the governor would then be likely.

The package is being opposed by real estate groups.