Deal ends legal challenge over tourism room tax
GLEN ARBOR — A tourism bureau in Michigan will stop collecting a room tax from two inns after a lawsuit challenged whether the levy was legal.
The Mackinac Center Legal Foundation said a judge dismissed the case after Sleeping Bear Dunes Visitors Bureau said it would stop assessing the fee against Sylvan Inn and Lakeshore Inn in Glen Arbor.
The lawsuit could have had broad consequences for tourism promotion programs around Michigan.
More than 50 tourism agencies collect a room tax. But the judge didn't rule on whether it violated the First Amendment.
David Gersenson said he can effectively advertise on his own and didn't want to pay a 2-percent fee.