Industry News
Michigan’s ski industry, known for its beloved local ski hills and sneaky lake-effect powder skiing on the Upper Peninsula, has been caught in the cross-fire of a Republican-led attempt to eliminate state property taxes. Michigan House Speaker Matt Hall recently proposed legislation that would add a 6% tax on luxury services, including skiing, golf, country club memberships, marinas, private jets, and environmental consulting, to name a few. Hall estimated this services tax could generate $4.73 billion, making up for most of a $5 billion cut of property taxes he proposed in early February.
To suggest that the same share of people who visit Michigan ski areas are the same share of people that also fly from country club to country club in their private jets is a little absurd. There is no question that recent ski industry trends, like skip-the-line access and exclusive clubs, are targeted at larger consumers of luxury goods, but the Midwest has a strong tradition of small, local ski hills targeted at serving their local communities.
- Related: Voters in Telluride, CO, Approve Lift Ticket Tax to Pay for Gondola—Could Utah Do The Same?
Michigan Republicans sought an amendment to the state constitution in 2024 that would have eliminated property taxes outright, but failed to collect enough signatures to get the issue on the ballot. Proponents could collect enough signatures to get the proposal on the November 2026 ballot, but Speaker Hall has been seeking a legislative path to eliminating property taxes.
- Related: Regional Transit Plan Could Transform Ski Access to Steamboat, CO, But Funding Questions Loom
Voters in Mountain Village, Colorado, approved a lift ticket tax on Telluride Ski and Golf Resort this fall to help pay for replacement of the free gondola that connects the town of Mountain Village with the town of Telluride. A similar measure failed in Telluride, Colorado by less than 20 votes. The Steamboat Springs, Colorado, City Council voted against sending a lift ticket tax question to voters that could have helped fund a growing regional transit program in the Yampa Valley. Michigan’s tax on luxury services, including skiing, would be unique among recent skiing tax proposals in that revenue would not be used to directly support ski town communities. As the proposal moves forward, the fight may ultimately come down to one question—whether skiing is truly a luxury, or simply a local winter tradition.
