Michigan
Short-term rental company sues Michigan over $18.7M tax bill
A nationwide short-term rental company is suing the state of Michigan over a tax audit that found the company owes about $18.7 million in unpaid use taxes to the state.
HomeAway, a Texas-based company best known for its vacation rental platform Vrbo, received a September bill for taxes due from the Michigan Department of Treasury for unpaid use taxes and interest in 2020, 2021 and 2022, totaling $18.7 million, according to the lawsuit filed in the Michigan Court of Claims.
HomeAway maintained in its Dec. 18 filing that it is the homeowners themselves who are responsible for collecting use taxes related to the short-term rental of their homes and remitting those taxes to the state.
“All funds representing use tax collected from guests were disbursed to the hosts,” the company said in its filing.
The state Department of Treasury and HomeAway declined to comment on pending litigation.
The tax fight comes amid a separate, but related, years-long fight in communities across the state and in the Legislature over how to best regulate and, in some cases, tax short-term rentals, which began to grow in popularity in Michigan after the 2008 housing crisis.
The Legislature has toyed with the idea of banning any local regulations over short-term rentals, putting some limits on those local regulations or establishing a statewide policy for short-term rental housing. State Rep. Mark Tisdel, R-Rochester Hills, helped introduce bills this fall that would allow communities to hold a vote on whether to tax short-term rentals locally to pay for essential services such as police or fire. The legislation has yet to receive a hearing.
In its suit filed Dec. 18 in the Michigan Court of Claims, HomeAway maintained that it was cognizant of the state’s 6% use tax and made provisions for its collection. But the ultimate remittance of that tax to the state is left to the homeowner.
When onboarding, according to the suit, a host or homeowner is given options regarding how they collect taxes. In Michigan, they could make it a percentage of the rental amount at booking or collect and remit the tax separately.
In either case, HomeAway argued, the host was responsible for paying the use tax. If the host made it a percentage of the rental amount due at booking, the taxes charged in the booking process were sent back to the host for remittance to the state. If the host indicated he or she would collect and remit on their own, the entire process was left to the host, according to the filing.
“The host acknowledged and represented that the host would handle tax collection from guests independent from HomeAway’s online checkout process,” HomeAway wrote in its filing. “…HomeAway never received or retained any tax amounts.”
In January 2023, the Department of Treasury began an audit of the prior three years, and in June 2025, the department issued a bill for taxes due for the audit period. The department found HomeAway wasn’t responsible for paying taxes if the host indicated he or she would collect and remit on their own. But the department maintained the company was responsible for remitting taxes where the host picked the option requiring the tax to be a percentage of the rental amount due at booking, the lawsuit said.
On Sept. 19, 2025, the Department of Treasury issued an $18.7 million bill, with about $15.1 million owed in use taxes and $3.6 million owed in interest. The bill included a total of $676,246 in use tax and interest for 2020, $8.6 million for 2021 and $9.5 million for 2022.
“The department — for the first time during the audit — alleged that for all bookings for which tax was collected on behalf of and at the request of the host, HomeAway unjustly enriched itself by failing to remit the collected taxes to the department,” the filing said.
The state treasury bills, attached to the lawsuit as exhibits, only note that the money due is for use tax and interest following an audit. There is no mention in the bills of which type of rentals HomeAway was responsible for when it came to remittance of the use tax.
HomeAway, in its lawsuit, denied that it was unjustly enriched, arguing the company didn’t keep any of the tax payments, but instead forwarded them to homeowners to remit to the state.
“It was the hosts — not HomeAway — that were responsible for remittance of use tax to the departments,” the filing said.
HomeAway also alleged the department’s audit violated the federal and state Equal Protection Clauses because it treated HomeAway differently from other similarly situated taxpayers.
“There is no precedent to support the department’s allegation, nor has the department applied this theory to similarly situated taxpayers,” the filing said.
eleblanc@detroitnews.com
Michigan
Michigan Department of Corrections to launch L.E.A.D. Academy program this fall
LANSING, Mich. — The Michigan Department of Corrections (MDOC) is launching the L.E.A.D. Academy, a new leadership development program set to begin this fall as part of the department’s Safe Prisons Initiative.
L.E.A.D. Academy stands for Learn Today, Empower Tomorrow, Aspire Beyond, Develop a Legacy.
Officials say the program is a four-phase leadership development pathway designed to support employee growth at every stage of a career, and intends to advance training and staff support goals by preparing employees to lead “with skill, integrity and professionalism.”
“Our workforce is constantly evolving, and it is more important than ever that we are supporting our emerging leaders in a way that will create change-makers and thought-leaders in the correctional field,” MDOC Director Heidi E. Washington said. “Well-trained professional staff create safe facilities by stepping above the status quo to challenge themselves, and those around them, to go above and beyond.”
MDOC partnered with Michigan State University to develop the program’s curriculum, focusing on leadership principles applied specifically to the corrections environment.
According to the MDOC, the program emphasizes daily conduct, communication, presence and professionalism as factors that can influence others and contribute to safer facilities.
“The curriculum is designed to help participants develop practical leadership skills rooted in communication, emotional intelligence, professionalism, and ethical decision-making,” Vivian Aranda-Hughes, an assistant professor in MSU’s School of Criminal Justice, said. “We are excited to support a program that invests in people and recognizes that leadership is demonstrated through the choices, actions, and influence individuals bring to their work every day.”
Applicants for the L.E.A.D. Academy will be selected through a formal review process after applying for the program, according to the MDOC.
To be eligible, applicants must meet the following requirements: one year of MDOC employment, attainment of satisfactory status during the initial probationary period, and full commitment to the program, including assignments outside the classroom.
Officials say the L.E.A.D. Academy is a key component of the state’s Safe Prisons Initiative, which was launched in March to improve safety and security across MDOC’s 26 prisons.
More information about MDOC’s Safe Prisons Initiative can be found online.
Michigan
Birmingham police say massive pool party should have been shut down sooner
Police in Birmingham, Michigan, say officers should have shut down a massive pool party in a residential neighborhood sooner last weekend.
More than 100 people showed up for a party in the 300 block of Westchester Way on June 13, when city officials say a private residential pool was rented out to a third party, violating zoning regulations.
“While officers shut the party down and issued multiple citations, the department acknowledges the party should have been shut down earlier,” said Birmingham police Chief Scott Grewe in a social media post. “Protecting public safety and preserving the quality of life in Birmingham neighborhoods remain top priorities. Should an event require intervention in the future, there will be police supervision to ensure the orderly and safe dispersal of attendees.
Homeowners on Westchester Way told CBS News Detroit that the street was filled with cars and some intoxicated partygoers.
“Women, I don’t even know if they were wearing anything, thong bikinis on top of vehicles, twerking,” said homeowner Brian Homer.
Birmingham police confirmed the individual who rented the backyard over the weekend was a promoter. Police say the homeowner and the person who rented the pool were among those who received citations.
Residents told CBS News Detroit that the house has been hosting parties for years and that its pool is listed on Swimply for rent.
“This isn’t the first time; this has been ongoing. This is just the first time he got caught,” said a resident who shares a fence with the homeowner who is renting their pool.
During a Birmingham City Commission meeting Monday night, Birmingham Mayor Clinton Baller said that the city had failed in this case.
Homeowners who spoke with CBS News Detroit said they are concerned about their safety, given that the neighborhood is filled with children.
In April, three men were arrested and later charged in connection with a shooting at a short-term rental in the 1400 block of East Lincoln Street. According to police, a party was advertised at the rental home, and three 18-year-old men drove up to the property, where other teens were gathering, when an argument ultimately led to a shooting.
Michigan
Skateboarding legend conquers California, revisits Michigan roots
Meet Michigan’s own Skateboard Hall of Famer Bill Danforth
Grosse Pointe native and legendary skateboarder Bill Danforth talks about how it all began for him and how it continues across the country.
Warren — Skateboarders flew through the air at Macomb County’s Eckstein Skatepark, launching off concrete ramps as spectators looked on from the surrounding rows of vendor tents.
Punk rock music from a band on the Creative Grind Fest stage echoed across the park as veteran skateboarders — and a legend in the sport — stood alongside the youngest, offering help and encouragement. Among them was 4-year-old Nikky Bukobich, who said the first thing he learned on a skateboard was “to fall.”
Bill Danforth, a Grosse Pointe South High School graduate, surveyed the scene. With buzzed silver hair, limited edition Danforth Vans sneakers and a white T-shirt, the 60-year-old skateboarding trailblazer talked with fans and signed boards.
“Young skateboarders are the future of the sport, and will be able to carry it on long after we are not,” Danforth told The Detroit News. “You’re never done with skateboarding. But after we slow down, they got to keep that tradition going.”
Danforth returned to Metro Detroit last weekend as one of the newest inductees into the Skateboarding Hall of Fame, making appearances at Royal Oak’s Modern Skate & Surf — which Danforth credits with keeping skateboarding alive in Michigan — and Warren’s Creative Grind Fest. As the skateboarding industry continues to grow, Danforth’s induction offers a look back at the figures who helped shape the sport’s early years.
Grosse Pointe meets California
Danforth was drawn to skateboarding as a Grosse Pointe youth when he realized it allowed him to express his creativity like no other sport did.
“I played organized sports when I was a kid. I played hockey, I played baseball, I played golf,” he said. “Skateboarding was unique, and it had no rules. We created our own groove.”
Danforth started skating wherever he could: “Most of it was at schoolyards or loading docks. This is before we were even building ramps.”
Then, in 1978, Detroit’s Endless Summer Skatepark opened in Roseville and Danforth began competing through the Great Lakes Skateboarding Association. These competitions drew attention to Danforth and other Midwest skaters from some of the largest industry groups on the West Coast, earning Danforth a sponsorship from Madrid Skateboards.
“We started getting recognized by California,” Danforth said. “All of a sudden we were sponsored by California companies — we’re getting free skateboards, we’re getting free wheels and we’re getting free components.”
‘Style is faster, more charged’
Art director and brand manager for Madrid Skateboards, Eagle Barber, said that Danforth stood out from others in the way he skated.
“His style is faster, it’s more charged. He was never an apprehensive, laid-back skater,” Barber said. “He was always going faster and bigger, and he had a very certain air of intimidation about him.”
Michigan professional skateboarder Garold Vallie, a close friend, added that Danforth was known for skating anything and everything.
“He could skate big halfpipes, but he could skate street,” Vallie said. “He could skate anything. He had his own style, and people gravitated towards that.”
Jerry Shirts, a skater and artist selling his spraypainted road signs at the festival, had often been inspired by Danforth’s tricks on the board, he said: “He was a big influence on me when I first started skating. I had seen him in the mags and such, and then realized he was from Michigan, so he was my favorite local skater. I copied all his tricks.”
Danforth was also unique simply for being a Michiganian. Todd Huber, founder and CEO of the Skateboarding Hall of Fame, said Danforth emerged from a region rarely associated with professional skateboarding.
“He wasn’t from California, and California kind of got the spotlight. He was from Detroit, no spotlight was on him,” Huber said. “He was cut from a different cloth, and he did things differently.”
Growing up in Michigan forced skaters like Danforth to be resourceful: “We had to fight a lot of issues just to be a skateboarder in Michigan. Nothing was given to us; we earned it out of our own blood, sweat and tears. We were skateboarders without attitudes in the Midwest. California was a bunch of attitudes with skateboards.”
‘The American Nomad’
The same determination that helped Danforth break into the sport also took him far beyond Michigan. Danforth flew, drove and hitchhiked across the world, skating any terrain he could find and earning him the nickname “The American Nomad.”
His journeys included a trip to Tahiti in the 1980s. Intended as a skateboarding clinic and demonstration tour, the trip turned into what Danforth called an unexpected adventure when political unrest erupted on the island. Danforth evacuated before continuing his travels through New Zealand and Australia.
Stories like these helped make him one of skateboarding’s most recognizable figures during the 1980s.
“He had the number one-selling board in the United Kingdom. He had one of the number one-selling boards in America,” said George Leichtweis, founder of Royal Oak’s Modern Skate & Surf. “And he would go anywhere with anybody in skating, and that’s a level of respect to the core of skateboarding.”
Memorabilia, renewed demand
Today, one of Danforth’s signature boards is part of the Smithsonian’s collection, alongside a copy of “Street Survival,” an instructional VHS video starring Danforth that helped teach a generation of skateboarders.
“He was definitely a really influential skater of the ’80s,” said Jane Rogers, a curator with the Smithsonian. “His board had a lot of cool elements — the graphic and the way the board was shaped. The circle of skulls definitely represents that time.”
Madrid Skateboards recently reissued several of his signature boards as part of a limited-edition collection. Only 200 of each design were produced, and the company said Danforth’s boards were the strongest sellers in its Gold Reissue Series.
Danforth has his own board company, American Nomad, where boards cost upwards of $95. Reissues or originals of Danforth’s signature boards can sell for hundreds or thousands of dollars, according to industry experts.
Such demand was visible during Creative Grind Fest. There, the Modern Skate & Surf tent reported strong interest in Danforth’s Hall of Fame commemorative deck, selling for $119, and his Madrid Misfit reissue boards, priced at $84.
“A big percentage of people are buying these things for the collectability aspect of it,” Barber said.
For many collectors, the boards represent more than a piece of equipment, skateboarding industry expert Iain Borden said: “To some extent, people are buying back the youth that they had.
“A lot of people in their 40s, 50s, 60s who can’t skate anymore, they’ve got injuries, they’re too heavy, they’re out of practice, but they still have this relationship to skateboarding that’s been a central part of their life. Board collecting is a way of keeping up that relationship.”
‘People can relate to Bill’
Danforth’s influence isn’t measured solely by the value of his memorabilia. Those who know him often point to his impact off the board as his most lasting contribution.
Danforth has spent decades mentoring younger skaters and supporting Native American skateboarding programs and Michigan skateparks, saying it is important to “share our knowledge with everybody”.
“People love Bill because people can relate to Bill,” said Creative Grind Fest organizer Bridget Harrington Renteria. “He’s great with kids, and he’ll talk to anybody. He’s got time for everybody.”
Among those eager to meet Danforth was 9-year-old Junior Wilie, whose admiration for the skateboarding pioneer was evident. With a photo of Danforth hanging on his bedroom wall, Wilie was excited to get his skateboard signed by him and other Michigan professionals. Wilie toted his skateboard around the park, darting in and out of vendor tents with his parents to find the perfect items.
Wilie wasn’t the only one eager to attend. Miguel Lynn rode his skateboard down into the concrete bowl before accelerating back up and over the rim. Lynn, who has been skateboarding for more than 20 years, said he was excited to learn Danforth would be attending the festival.
“He’s awesome. I look up to that guy,” Lynn said. “He’s been skating for so long, being that old, being able to skate, it’s amazing.”
Vallie was among the skateboarders mentored by Danforth. What began with drawing pictures of Danforth in class as a child eventually led to years of skateboarding and traveling alongside him.
“I think the term legend gets thrown around too much,” Vallie said. “But I do think he embodies every part of what that word encompasses — not only from his skateboarding accomplishments, but bringing skateboarding back to Michigan and helping kids.”
atisch@detroitnews.com
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