The future of Airbnb and other short-term rentals in Michigan could be affected by a new package of legislation to regulate short-term rental properties.

The legislation championed by state Representative Joey Andrews would levy new taxes on short-term rentals, create an annual registration fee for owners, and more.

In New Buffalo, a lakefront community with a population of about 1,800, Mayor John Humphrey says he doesn’t agree with every aspect of the bills, but he’s all for taxing short-term rentals. Humphrey says his community has suffered for years due to what he calls the “gigantic” unrecovered tourism costs generated by the rentals.

“Every short-term rental has a residential use of 10,” Humphrey said. “Residential use means the number of people that use the home, where a standard residence is only 2.2. And those costs are not recovered because there are no excise taxes. There are no use taxes. There are no lodging taxes on short-term rental.”

Humphrey says the strain on the city caused by STRs includes effects on roads, sewer, water, and other infrastructure.

If passed, the legislation could generate between $35 million and $70 million per year. Backers say that money would be distributed to the local governments where the rental properties are located.