Axe Looms for Pure Michigan

A new tax on rental cars would be used to lure out-of-state tourists to Michigan under a bill being discussed at the State Capitol. The fee would only be charged on cars rented at an airport, hotel, convention center or bus or train station. The money would help pay for the Pure Michigan marketing campaign.

Michigan will spend 30 million dollars this year to promote the state as a travel destination for the rest of the country. State Senator Jason Allen says if something isn't done that amount will drop significantly next year and that can't happen. 

"You just can't go out and spend thirty million dollars and then next year go to five million dollars and expect you're going to have a continuation of people visiting your state." 

Senator Allen has also proposed capturing some future taxes for the travel budget that would otherwise go to schools or local governments. He says spending money to promote tourism brings more money into state coffers by attracting people from out of state. Michigan faces a nearly 2 billion dollar budget shortfall next year.