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
Man arrested for firing shots outside Michigan domestic violence center
Michigan
I discovered anti-Zionism at the University of Michigan. I’m glad it lives on there
Pro-Palestinian demonstrators gather for a mock trial against the University of Michigan’s Board of Regents on the university’s campus in Ann Arbor, Michigan, on April 21, 2025. Photo by Jeff Kowalsky / AFP / Getty Images
At the University of Michigan’s recent commencement ceremony, history professor Derek Peterson delivered a five-minute speech in which he celebrated all those who have fought for justice at the university, my alma mater. Invoking our legendary sports-focused fight song, he asked the crowd to “sing” for suffragist Sarah Burger, who battled to get women admitted as students; for Moritz Levi, Michigan’s first Jewish professor; for all the students who fought for racial justice at Michigan as part of the Black Action Movement; and for the “pro-Palestinian student activists, who have over these past two years opened our hearts to the injustice and inhumanity of Israel’s war in Gaza.”
Peterson’s address was a historian’s invitation to every student and parent in the Ann Arbor stadium to recognize that the fight for Palestinian rights shares roots with our greatest movements for justice, including the struggle against antisemitism.
The backlash, predictably, was swift. The university’s president apologized; the speech was condemned by pro-Israel Jewish organizations and outlets; and I know it upset many college parents, my Gen X peers — we who were raised to believe with all our hearts that Jewish identity and Zionist identity are inextricable.
But to me, Peterson’s speech was a reminder of one of the most important lessons I took away from my time at the University of Michigan: that questioning Zionism is a necessary part of any Jewish life that aims to center justice.
I graduated from Michigan in 1989, and spent much of my last year in Ann Arbor ensconced at Hillel, where I edited a magazine for Jewish students. I’d grown up going to Young Judaea summer camps and had spent a college semester in Israel, where I’d witnessed the beginning of the first Intifada. I returned to find a shanty in the middle of campus that had been erected, a student organizer told our magazine, “to bring the uprising to the community. It is to show the conditions of the Palestinians and the brutal oppression of the Israeli army.”
The shanty evoked those then prevalent on campuses everywhere to symbolize the struggle of Black South Africans against settler colonialism and apartheid. The new shanty on our campus asserted that these words also applied to Israel.
While I was strongly against the Israeli occupation of the West Bank and Gaza — where Israel would not remove any settlements until 2005 — I was distressed and confused by the shanty’s silent, everpresent message about Israel’s past and present. Is Israel an apartheid state, I wondered?
So I put that question on the cover of our magazine.
The Hillel director called me into his office and somberly expressed his concern. But Hillel International had not yet officially clamped down on student activities that question Israel and Zionism.
So our cover story ran and we dropped our magazine in bundles across campus. At the time, I thought of myself as a liberal Zionist, and I secretly rooted for the student who tried to disprove the devastating charge. But as young journalists, my fellow magazine staffers and I were committed to exploring the views of those who erected the shanty, no matter their hostility to Zionism. We didn’t code the hostility as danger. No one thought we should report our ideological opponents — the kids who fell asleep on their books in the library just like we did — to the dean or to the government for arrest or deportation.
Over my time as an undergraduate, I’d come to recognize in these kaffiyeh-clad Palestinian, Arab, and Muslim students the same history-minded, righteous hope that animated me.
Decades later, in the spring of 2024, we all watched as pro-Palestinian student activists — including many Jewish students — set up campus encampments around the country to protest Israel’s assault on Gaza. At Michigan, the encampment was set up on the Diag, the university’s public square, where on the day of my own graduation I’d protested the university’s military research. As the mother of a recent college grad, I was humbled by the determination of these kids, who put up tents, organized teach-ins, and then suffered as police turned off their bodycams and used pepper spray against them. They were lawfully protesting for the university to divest from Israel as it bombed the people of Gaza, the children of Gaza — which is now home to the largest number of child amputees in modern history.
What I understand, and Professor Peterson understands, is that the student activists that he lauded at the commencement are fighting not against Jewish life but for Palestinians’ right to survive daily, as people, and as a people. These activists have asked us to understand, finally, that Zionism is what it does.
“It has been hard work to examine my own mind,” Tzvia Thier, a Jewish Israeli mother, wrote in an essay in the 2021 collection A Land With A People: Palestinians and Jews Confront Zionism. As a child, Thier immigrated to Israel from Romania in the wake of the Holocaust. In 2009, Thier accompanied her daughter to “protect” her while she joined an action to fight the evictions of Palestinians from their homes in the Jerusalem neighborhood of Sheikh Jarrah. Thier was 65, and realized that it was the first time in her life that she had had conversations with Palestinians. She understood then that “it was not my daughter who needed to be protected, but the Palestinians.”
“Many questions leave me wondering how I could have not thought about them before,” she wrote. “My solid identity was shaken and then broken. I have been an eyewitness to the systematic oppression, humiliation, racism, cruelty, and hatred by ‘my’ people toward the ‘others.’ And what you finally see, you can no longer unsee.”
When that shanty went up on Michigan’s campus in the late ’80s, I began to question all that I’d learned about Israel’s founding. I began to question the very idea of an ethnostate — in the name of any people, anywhere — that enshrines the supremacy of one group of people over another.
By the time I became a mother, I’d become anti-Zionist. I understood — with a grief that does not abate — that, as Jews, our history of oppression has become an alibi for Israel’s oppression of the Palestinian people.
We must reject the bad faith accusations of antisemitism that have emptied the word of meaning and enabled authoritarian repression. When students on campuses today charge Israel with apartheid and genocide, they are echoing reports from B’Tselem, Israel’s leading human rights organization. I ask the parents of my generation to read these reports and do as Thier did — to allow themselves to see what we have not wanted to see.
I stand with the more than 2,000 University of Michigan faculty, staff, students and alumni who have condemned the university’s response to the commencement address heard round the world.
For the sake of all of our children, I ask that we each do all we can to open our community’s heart to Palestinian history and humanity. That we each join the urgent struggle for the liberation of the Palestinian people.
This is the way that our Jewish college kids will find the deep and true safety of community: by leaving hatred, fear, and isolation behind; by honoring Jewish history by standing in solidarity with all who are oppressed; and by roaring in a stadium for freedom and justice, along with their entire generation.
You are surely a friend of the Forward if you’re reading this. And so it’s with excitement and awe — of all that the Forward is, was, and will be — that I introduce myself to you as the Forward’s newest editor-in-chief.
And what a time to step into the leadership of this storied Jewish institution! For 129 years, the Forward has shaped and told the American Jewish story. I’m stepping in at an intense time for Jews the world over. We urgently need the Forward’s courageous, unflinching journalism — not only as a source of reliable information, but to provide inspiration, healing and hope.
Support our mission to tell the Jewish story fully and fairly.

Michigan
Thumb Coast Electric earns Michigan 50 Companies to Watch honor
Thumb Coast Electric has been named a 2026 Michigan 50 Companies to Watch Award recipient, according to a community announcement recognizing high‑growth, second‑stage businesses across the state.
The Port Huron‑based electrical contractor was honored April 22 during the 22nd annual Michigan Celebrates Small Business Gala, where company representatives were recognized onstage alongside other awardees before an audience of more than 800 business owners and supporters.
The award is presented by Michigan Celebrates Small Business, which annually recognizes companies that demonstrate strong growth potential, sustainable competitive advantages and a commitment to their communities. Thumb Coast Electric is listed among the 2026 honorees in the Michigan 50 Companies to Watch category.
Recognizing second‑stage growth
The Michigan 50 Companies to Watch Award honors second‑stage companies — defined as businesses with six to 99 full‑time‑equivalent employees and annual revenue or working capital between $750,000 and $50 million — that are privately held and headquartered in Michigan.
“These companies represent the future of Michigan’s economy,” said Brian Calley, president and CEO of the Small Business Association of Michigan, which partners in the awards program. He said the designation recognizes businesses that combine consistent growth with strong workplace culture and community impact.
Judges from economic and entrepreneurship development organizations across the state select winners based on employee or sales growth, sustainable competitive advantage and other indicators of long‑term success. Award finalists also undergo a due‑diligence review before final selections are made.
Community and company culture
Thumb Coast Electric representative Erica Chisholm said the recognition reflects both employee dedication and community support.
“Receiving the Michigan 50 Companies to Watch award is a huge honor because it reflects the hard work our team puts in every day and the support we’ve had from our community,” Chisholm said, according to the announcement. She said the company has focused on sustainable growth, investing in its workforce and maintaining quality standards as it expands.
Michigan Celebrates Small Business launched the 50 Companies to Watch program in 2004 and has honored more than 1,200 businesses statewide over the past two decades.
This story was created by Dave DeMille, ddemille@gannett.com, with the assistance of Artificial Intelligence (AI). Journalists were involved in every step of the information gathering, review, editing and publishing process. Learn more at cm.usatoday.com/ethical-conduct.
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