In 2007 the Michigan Legislature approved a “temporary” income tax hike, raising the rate from 3.9 percent to 4.35 percent. Embedded in the legislation was a promise to gradually roll back the tax hike starting in 2011, returning to the previous 3.9 percent rate by 2015.

Instead, in 2012 the Legislature voted to freeze the income tax rate at 4.25 percent and cancel the scheduled reductions. The income tax never went back to the original 3.9 percent. In 2016 alone, Michigan taxpayers delivered an extra $770 million in income taxes that they wouldn’t have had to pay if the 2007 tax cut promise had been kept.

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Renting out the family summer cottage is a common practice in Michigan, and with today’s technologies, it’s easier than ever, empowered by services like AirBnB, HomeAway, VRBO and more. These short-term rentals mean vacationers can find a place much more easily and inexpensively, while owners can earn some extra money. It seems like a win-win. Not everyone agrees. Some in the accommodations and tourism industries aren’t happy with the increased competition and are advocating for limiting people’s rights to rent out their homes. Some homeowner associations are pushing back as well. And while cities like Detroit and Grand Rapids have mostly embraced home sharing, some local governments have restricted and even banned the practice.

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