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
Opportunity knocks for Michigan’s guards with L.J. Cason out
Ann Arbor — The Wolverines won the outright Big Ten regular-season title with two games to go, but it came at a great cost.
L.J. Cason, Michigan’s backup point guard and a key piece of the rotation, tore his right ACL in the championship-clinching win at Illinois. Just like that, Cason’s season was over and Michigan was hit with a brutal blow.
But when adversity strikes, opportunity knocks. While the team won’t be the same without Cason, coach Dusty May believes Michigan has backcourt pieces who can step up and make up for the loss.
“This is a great opportunity for Roddy (Gayle Jr.), Trey (McKenney) and Nimari (Burnett) to play more, and those guys are really good players,” May said Monday. “Our rotation has been nine and nine, I think, is too deep. It’s playing too many guys, if you want to optimize everyone. But we felt like we had nine guys that deserved to play, that gave us a different element.
“We look at this as another challenge, but it’s also an opportunity for guys to play a little bit more, to play longer periods, to play through a mistake, to play a little bit different role. We do feel like these guys are a lot better than they were earlier this year, so we’re prepared to handle whatever comes at us.”
May said he doesn’t know exactly when Cason tore his ACL, and neither does Cason. The sophomore guard fell to the court and got up favoring his right leg on two separate occasions against Illinois.
The first instance came in the final minute of the first half, when Cason tipped a long rebound ahead and chased it down to start a fast break. After he grabbed the ball in the air and bounced it backward between his legs to a trailing teammate, Cason went down. He got up hobbling, was subbed out and went back to the locker room.
Cason briefly checked back in during the second half and scored a driving layup a minute into his shift. But on Michigan’s next possession, he fell down after trying to score through contact and got up limping again. Shortly after that, Cason motioned to the Michigan bench to be taken out of the game and he exited for good.
“At halftime, the training staff came and said basically he’s passed all of his jump test. He just did the bike. He says he’s 100% ready to go. I was surprised, because I was expecting him to be out,” May said. “I said, ‘What about the test?’ They said both of his knees are loose, so it’s hard. We don’t feel that anything is torn.
“He comes back in. He lands funny again. … It’s unfortunate for him because he was playing so well. When an ACL pops on a noncontact injury, you’re like, ‘Man, what could we have done different?’ When it happens on a funny, quirky play, usually those are the ones that aren’t preventable.”
May added it hasn’t been determined yet when Cason will undergo surgery. Given the typical recovery timeline for a torn ACL ranges anywhere from nine to 12 months, May said Cason redshirting next season is a possibility that’s “on the table.”
“That’s certainly been discussed as well, and then that impacts the recruiting decision-making,” May said. “But right now, we’re still trying to figure out when he’s going to have it. What’s the timeline? Does it make sense to go ahead and sit out next year? … We haven’t made any definitive decisions, because all the information is so inconclusive.”
Moving forward, the plan isn’t to have just one guy replace Cason, who averaged 8.4 points and 2.4 assists in 18.6 minutes per game, shot 40.2% from 3-point range and served as a facilitator when starting point guard Elliot Cadeau wasn’t on the court. It’ll be a by-committee approach.
That said, Cason’s absence is certainly going to put much more on Cadeau’s shoulders. The Wolverines can ill afford to have Cadeau commit unnecessary fouls and miss long stretches at a time. Without Cason, Cadeau is the one guard who can break down opposing defenses off the dribble and create for others.
“This will force Elliot to be much more solid with his defensive decision-making when it comes to fouling,” May said. “He doesn’t have that insurance policy anymore named L.J. behind him, because L.J. came in and carried the load several games for our group. That’s not there anymore.”
While Burnett, Gayle and McKenney haven’t had to be facilitators in their roles this season, May expressed confidence all three can take on minutes with the ball in their hands and initiate the offense.
Even beyond the guards, May noted the team has “other capable weapons” who can serve as triggers on offense depending on the matchup, like forwards Yaxel Lendeborg and Morez Johnson Jr. and big man Aday Mara.
Add it all together, May feels the Wolverines can find a way to absorb the blow, fill the void and forge ahead with Cason sidelined.
“We have enough to overcome what L.J. brought to the team,” May said. “I don’t know if he’s the best backup point guard in the country, but I can’t think of one that’s better. We’re losing a lot, but once again, we’re not going to sit here and look at it from that angle.
“This is an opportunity for all these other guys to do a little bit more, and they’re more than capable. It’s on us to find the right rotations and situations. Without a doubt, we have a lot of confidence in our roster.”
jhawkins@detroitnews.com
@jamesbhawkins
Michigan
Michigan State Police patrol car damaged in hit-and-run on Lodge Freeway in Detroit
The Michigan State Police is looking for the driver of a Jeep that the agency said hit one of its patrol cars on Lodge Freeway in Detroit Sunday night.
According to officials, the incident happened at 7:50 p.m. on the northbound side of the freeway near Shaefer Highway. The agency said a trooper was investigating a crash and had the patrol car parked on the right shoulder of the freeway with its emergency lights on when it was rear-ended by the Jeep.
“The impact forced the patrol car to strike the concrete wall on the right shoulder,” according to the agency.
The Jeep then went across three lanes of the freeway and hit a median wall, officials said. The driver, identified by law enforcement as a 29-year-old Detroit woman, left the vehicle and fled the scene.
Michigan State Police First Lieutenant Mike Shaw said that while the trooper was evaluated and cleared at the scene by medical personnel, he was still taken to the hospital as a precaution.
Michigan
Indiana extends Big Ten streak to five as the Michigan women win for the first time since 2018
The Indiana men didn’t just win, they secured a fifth straight conference championship, continuing a swimming and diving dynasty in Bloomington. Michigan’s women surged to the top of the league, capturing the title with authority and balance across the lineup.
Records fell left and right throughout the week as this year’s Big 10 championships featured some of the best performances in conference history in the pool.
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Here are the main takeaways from this year’s Big 10 swimming and diving championships:
Indiana breaks away from Michigan to win fifth straight title
The Indiana men continued their dominance in the pool in 2026, extending their Big 10 dynasty.
From start to finish, the Hoosiers demonstrated experience and elite talent. Indiana won ten different events, including two relays and eight individual wins from six different athletes.
Indiana dominated the distance events this week, winning the 400-yd IM, the 500-yd freestyle, and 1,650-yd freestyle. Senior Zalan Sarkany won both distance freestyle events while freshman Josh Bey started off his Big 10 career with a win in the 400-yard IM.
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Owen McDonald was the second highest scorer in the meet behind Michigan senior Tyler Ray, who was named Big 10 Swimmer of the Championships. The senior won the Big 10 title in the 100-yd backstroke and 200-yd IM.
Senior Kai Van Westering and junior Dylan Smiley closed on the week with wins on the last night of competition for the Hoosiers. Van Westering grabbed the win in the 200-yd backstroke and Dylan Smiley won the 100-yd freestyle before leading Indiana to a win in the 400-yd freestyle relay to close out the meet.
Beyond individual stars, the Hoosiers stacked swims in the top eight of each event, showcasing balance across not only distance, but sprint and mid-distance events as well. Indiana’s performance combined consistency and poise, placing swimmers in the establishing control from the first event individual event to the final relay.
The win marks Indiana’s 32nd Big 10 title overall, which is second all time behind Michigan. Head coach Ray Looze won his ninth men’s Big Ten title, moving him into the top five all time in conference history.
The Hoosiers have once again positioned themselves as one of the nation’s elite teams, ready to challenge for another top-three finish at the NCAA Championships in March.
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Michigan women continue building momentum
The Michigan women left Minneapolis with its first Big 10 title since 2018 and the Wolverines’ 18th all-time, the most in conference history.
The Michigan women started the season ranked tenth in the CSCAA Top 25, one spot behind Big 10 rival Indiana. Since December they’ve moved into the top four and have cemented themselves as one of the best teams in the country.
“We had a really great team this year,” senior Devon Kitchel told Yahoo Sports. “Throughout the season we consistently worked hard and continually improved. By the time B1Gs came we were ready to go.”
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As a team Michigan won eight individual events, took first in four of the five relays and medaled in five additional events.
Bella Sims lead the charge for the Wolverines. The junior transfer won two out of her three individual swims and was named Swimmer of the Championships, the first for Michigan since Maggie MacNeil won it three times between 2020-22.
As a team, Michigan put eight athletes of a possible 17 on the All-Big 10 First Team. Along with Sims, eight-time Big 10 champion Stephanie Balduccini, eight-time Big 10 champion Brady Kendall, five-time Big 10 champion Letitia Sim, and five-time Big 10 champion Hannah Bellard led the way for the Wolverines.
Michigan will now turn its focus to the NCAA Championships in March, where the team will attempt to improve on its ninth-place finish in 2025.
Welcome to the Big 10, Bella Sims
Bella Sims is finding her groove in Ann Arbor.
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Sims swam in seven Big Ten finals, which included the 200-yd and 400-yd IM’s, the 100-yd backstroke, and four relays. She finished the meet with five gold medals and two silvers.
In her first two years of collegiate swimming Sims was a three-time NCAA champion, thirteen time All-American, and nine time SEC champion. However, all three of her NCAA titles came during her freshman season at Florida.
The Las Vegas native has represented the United States at the Olympics and World Championships and transferred to Michigan to finish her collegiate career.
Now approaching her third NCAA championship meet, Sims has momentum on her side. Although she is yet to go a personal best this season, Sims is leading the Michigan women to new heights in 2026.
“Bella Sims is an amazing swimmer and an even better person,” Kitchel said. “Obviously she helped our team with points, but she is such a light on deck and such a joy to train with everyday.”
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Sims barely had a lowlight during her week in Minneapolis. Her lowest finish was second in the 100-yard backstroke, where she was upset by Wisconsin’s Maggie Wanezek by 0.03 seconds.
There is little doubt Sims will go down as one of the best in Big Ten history when she finishes her career as a Wolverine.
Big 10 records come crashing down
Across the men’s and women’s meets, six Big Ten conference records were set in 2026. In addition, 16 meet records fell over the two championship weeks.
On the women’s side Michigan set two conference records in the 200-yd and 800-yd freestyle relays. Kendall and Bellard added to the total with their marks in the 50-yd free and 200-yd butterfly, respectively.
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Six additional meet records were broken including Michigan’s 200-yd and 400-yd medley relays, Sims’ 400-yd IM. Indiana’s Liberty Clark broke the meet record in the 100-yd freestyle, and Wanezek added one in the 200-yd backstroke. Indiana finished the week with a meet record in the 400-yd freestyle relay.
Nine total records fell in the men’s meet, including two conference records and seven additional meet records.
Ray broke 44 seconds in the 100-yd fly to set the Big 10 record in 43.83, which moves him up as the tenth fastest performer in history. The Michigan senior also broke the meet record in the 200-yd butterfly in his last Big 10 swim.
Bey cut over seven seconds in the 400-yd IM to win the title and break the conference record. The IU freshman came into the meet seeded with a 3:43.34 stopped the clock in a blistering 3:34.90.
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The other four meet records came from Michigan freshman Luka Mladenovic in the 200-yd breaststroke, Indiana senior Zalan Sarkany in the 500-yd and 1,650-yd freestyle, and Ohio State in the men’s 800-yd freestyle relay.
After a fast two weeks, it seems the top athletes from the Big 10 will be ready to roll at the NCAA championships in March.
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