A Tradition in Hancock, Good News at NMU and MTU, Tourist Tax Gets Lots of Response, and From the World Around Us
– INFORMED BREVITY –
Around the Upper Peninsula
A Tradition in Hancock
Friends in Houghton/Hancock tell us that Hancock will get a traditional Finnish public sauna. It will be located on the Portage Waterway. Lots happening in the beautiful cities of Houghton and Hancock and lots of tourists were there this summer to take it all in.
Good News at NMU and MTU
Both Northern Michigan University and Michigan Technological University are reporting increases in enrollment this Fall. Not only is that good for the budgets of both institutions, but it is good for the local economies because those students and their families are spending money in those communities–14,839 plus students combined. It also helps keep people employed in those communities and strengthens the economies of the region. NMU and MTU also reported an increase in credit hours of returning and new students which is very important to the computation of state aid to each university.
Congratulations to both NMU and MTU and all their employees who made this success and good news possible.
We need a regional economic impact study on the three Upper Peninsula universities.
Tourist Tax Gets Lots of Response in Recent Whispers
We recently wrote in Whispers that with the financial stress in local governments around the Upper Peninsula that maybe the idea of adding a tourist tax to hotel bills that could be shared with local governments to help defer some of the costs of the increase in tourists visiting our towns, while we enjoy the benefits to our economies around the U.P. from these wonderful visitors.
One observer told us she never heard of anyone who refused to stay in a hotel because of a tax on their hotel or Airbnb type of residence. Another observer said that a very small tax like 2 or 3 percent would help local governments.
Downstate communities have gotten this type of tourist tax approved by the legislature to help with local project and revenue issues. It takes legislation. To get this done there would need to be legislation passed to let the U.P. communities implement a tourist tax. Let’s hear from our local legislators and from community leaders. Also from some taxpayers. This type of discussion most likely is best discussed after this year’s November election.
From the World Around Us
VAPING: Youth vaping is down by almost 25% over the past year according to CDC and FDA.
REGISTERING TO VOTE IN NOVEMBER: Millennials and Gen Z are registering in record numbers and indicating in recent polls that they will turn out to vote on election day–November 5th. Hearing this seems to be the case throughout the UP. Will these new voters impact election results?
SOME MICHIGAN HISTORY: “In 1890, the Michigan Supreme Court sided with William Ferguson and handed down a ruling that ended the separation by race in public places.” Michigan Advance.
Quotes That Make Us Go Hmmm
“We should be eternally vigilant against the attempts to check the expression of opinions that we loathe and believe to be fraught with death.” Justice Oliver Wendell Holmes.
Books Recommended by Our Readers
“Autocracy Inc. The Dictators who want to run the world.” Anne Applebaum. 2024.
“A masterful guide to the new age of authoritarianism…clear sighted and fearless…a masterclass in the marriage of dodgy government to international criminality…(both) deeply disturbing.” John Simpson. The Washington Post.
NOTE: I just read it and it is engaging and fascinating. Really worth a read in these times.
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I pay higher property taxes on our second home ,on the water, in the U.P. than for our primary residence. If a “tourist tax” is enacted I hope it would only be on lodging not for restaurants.
Thank you for this interesting and relevant weekly email!
Tad
I live in the Twin Cities and follow the UP news. Will follow on this tourist tax. Obviously a fine line will need to be hewed to avoid hurting tourist business which is a huge economic plus for the region. Many municipalities that are large put on hotel taxes, airport taxes, car rental taxes, event taxes to catch tourist dollars….some places are judicious; others like Phoenix AZ are a bit much (the cost of a car rental sometimes is less than the fees/taxes associated with it on a per day basis).
Also great news on Northern and Tech…..they are bucking the trend among small and midsized colleges. A recent article in the Minnesota Star Tribune pointed to St Cloud State University which has lost nearly 50% of its enrollment in the past 15 years. The Great Recession of 2007-08 caused a significant drop in births and that generation is coming into freshman class time now. Highly competitive and prestige schools are still keeping up, but the 2nd and 3rd tier state and private schools are struggling across the USA and the demographics are going to really kick in 2025 forward.
We are paying the CVB tax which varies around the country from 12-20% of the room rental. So a 3% tax would be OK as long as you realize it becomes a 15-23% tax. Tourism is an important ED tool with the downside of pollution from transportation, increased waste and greater energy needs. There’s no easy solution.
Bryce’s comment on car rental in Phoenix is for airport rentals only where you’re paying a huge overhead cost akin to a CVB tax. Why do airport authorities do it? Because they can. Where else ya gonna go? Monster-sized municipal airports have enormous costs where even ED on their land isn’t enough to cover their ever mushrooming costs. Do we want bigger and bigger airports or should people think about voluntarily reducing their travel for the sake of our environmental survival?
I see a future where people are going to have to stop “traipsing all over the world’ regardless of whether they want to or not. UN/WHO “emergencies” in succession will eventually blend together until the “this is just how it is” sets in…wouldn’t take long at all. The majority of the proles haven’t even be outside of their home state so will not experience any sort of personal impact. The upper echelon of the bougies who are “too big to fail” will be immune from any impacts. The middle will feel like the rug has been yanked out from beneath them. Figure out where you want to be and stay there folks! You won’t be going any further than 300 miles to the next charging station anyway.
One concern is this tax lingering long after the majority move on from their current interest in biking, hiking, and “discovering” rural America. Of course a sunset provision could be provided IF the legislators are forward thinkers. Another concern is “tax-creep.” 3 to 4 %: the low-ball bid to get people on board and then, like all budgets of “other people’s money,” more dollars will need to be raised. Promoting the tax will include arguments of, “it’s just a small percentage.” How about local governments which experience marked gains from tourism, plan their operating budgets accordingly considering it’s such a small amount to be raised?
OR…just go-for-it straight out of the gate. 18% across the Board! Strike-while-the-iron-is-hot