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Hotels and motels in Michigan charge sales tax on products such as store merchandise and food and beverage service. Overall, there is not much change in the monthly levels of sales tax collection reported by the Michigan Department of Treasury between 2000 and 2001. Unfortunately, we have little explanation for the spike reported in September 2000.
In the latest month for which data are available, January 2002, it appears that the sales tax collected by the state's lodging establishments, was slightly lower than during the same month in the past two years.
Statewide hotel and motel sales tax collections have continued to be lower in February and March 2002 than during the same months in the previous two years.
Sales tax collections were only slightly lower in April and May 2002 than in recent previous years. However, they were significantly lower in June 2002 than in any other recent Junes. This may be reflective of the downturn in business travel that the hospitality industry has been facing as a result of the weakened national and state economies.
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