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A use tax is assessed on every transient hotel or motel room "sold" in Michigan. As expected, Michigan lodging establishments experience higher occupancy rates during the peak summer vacation months, which are obvious in the data collected by the Michigan Department of Treasury. The last three months of 2001 experienced declines in tax collections likely due to the aftershocks of the terrorist attacks on 9/11.
The use tax collections in January 2002, the latest month for which data are available, are slightly lower than for the same month last year, but right on track with January 2000.
The statewide use taxes collected by Michigan hotels and motels were slightly lower in February and March 2002 than during the same months in the previous two years.
Use tax collections were slightly lower in April 2002 than in the previous two Aprils, and May 2002 collections were similar to May 2000 and 2001. However, lodging industry use tax collections were significantly lower in June 2002 than in any other recent Junes. As noted when explaining the same trend in sales tax collections, this may be reflective of reduced amounts of business travel in the current weakened economic state.
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