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
Menominee, Michigan man arrested on sexual assault charges involving a minor
MENOMINEE, Mich. (WLUK) — 24-year-old Ethan Raymond Masters of Menominee was arrested on sexual assault charges June 30th, according to the Menominee County Sheriff’s Office.
According to a news release from the Sheriff’s Office, deputies learned of an incident involving a 24-year-old man and a 12-year-old girl which happened in Menominee June 22nd. Following a sexual assault investigation, police charged Masters.
Masters was arraigned July 2nd on 2 counts of Criminal Sexual Conduct First Degree. He remains in the Menominee County Jail on a $250,000 cash bond.
Menominee City Police and the Michigan State Police Crime Laboratory of Marquette assisted with the investigation.
Michigan
Michigan immigration advocates react after Supreme Court ruling on Temporary Protected Status
Twenty-four thousand immigrants in Michigan have Temporary Protected Status (TPS), but a recent Supreme Court decision could put their protection in jeopardy.
TPS is a humanitarian protection granted to U.S. immigrants fleeing dangerous situations in their home countries, often from natural disasters or political instability. The status allows immigrants from the designated countries to live and work in the U.S.
The Supreme Court overturned those for 356,000 Haitians and Syrians in a recent decision. While the court’s decision directly impacted Haitian and Syrian immigrants, it also established that the Secretary of Homeland Security has the authority to determine TPS status without judicial review or input from the courts.
That means that the Secretary of Homeland Security can eliminate TPS for any immigrant group that is currently in the U.S. under protection. That puts 1.3 million immigrants in the U.S. at risk of deportation. In Florida, 113,000 healthcare workers with TPS are at risk of deportation. The Haitian population in Philadelphia is also expressing concerns about what comes next for them.
“The Supreme Court turned its back on our moral and legal commitments to people seeking safety,” said Christine Sauvé, manager of Policy and Communication at the Michigan Immigrant Rights Center. “The decision eliminates legal protections for people fleeing danger and allows the Trump Administration to really advance its mass deportation agenda.”
Left without the ability to live or work in the U.S., these Haitian and Syrian immigrants with TPS now face deportation. But going back home could still be incredibly dangerous.
“It’s not really an option to go back to their home country,” said Melanie Goldberg, immigration attorney with the Institute of Metro Detroit. “In the case of Haiti, they don’t even have an airport in Port-au-Prince that’s operational. Yet they say it’s safe for these citizens to go back.”
In Michigan, immigrants with TPS have contributed $349 million to the state’s economy, a sign that they are deeply embedded in the community, according to Sauvé.
“Many TPS holders have been in our communities for a very long time,” Sauvé said. “They’ve really spent decades building their lives here in Michigan. We welcomed them here, only to see that completely ripped away with the stroke of a pen.”
The Michigan Immigrant Rights Center encourages Haitian and Syrian immigrants with TPS, as well as any immigrants in the U.S. with a TPS designation, to seek out a qualified legal service provider and review the “Know Your Rights” Materials on the MIRC’s website
Michigan
Sherrone Moore’s former assistant sues University of Michigan over alleged FOIA violations
A former University of Michigan assistant whose relationship with ex-coach Sherrone Moore was under investigation is accusing university officials of refusing to provide records related to the probe.
Paige Shiver filed the lawsuit on Wednesday in Washtenaw Circuit Court, claiming that U of M “arbitrarily and capriciously” violated the Michigan Freedom of Information Act by repeatedly denying her requests. Shiver and her legal team are seeking a court order requiring the university to disclose the records.
The lawsuit also alleges that throughout Shiver’s four-year employment with U of M, she was “discriminated against and subjected to a hostile work environment on the basis of her sex, in violation of Title VII of the Civil Rights Act of 1964, and Michigan law including Elliot-Larsen Civil Rights Act.”
“The lawsuit filed today demands transparency and accountability from the University of Michigan, President Grasso and the Board of Regents,” said Shiver’s attorney, Andrew M. Stroth.
On Wednesday, CBS News Detroit reached out to U of M, which says it has no comment.
The investigation led to Moore’s firing in December 2025. At the time, it was determined that he was in an inappropriate relationship with a staffer, who was later identified as Shiver.
Moore was arrested hours later after authorities said he went to Shiver’s home and threatened to harm himself. He was charged with third-degree felony home invasion, as well as misdemeanor counts of stalking and of breaking and entering. Moore was sentenced to 18 months’ probation after pleading no contest to the two misdemeanor charges.
According to the lawsuit, Shiver filed a FOIA request in February 2026 for audio, video and transcripts of interviews of herself, her father, Jeff Shiver, and Moore. The lawsuit alleges that the university denied her request, citing the ongoing investigation.
The lawsuit alleges that Shiver submitted a similar request months later, in June, but was told by the university that it was “overly broad and vague” and “does not describe a ‘public record sufficiently to enable the public body to find the public record.’”
The lawsuit claims that requests were submitted in March and May, respectively, for all emails sent to the law firm Jenner & Block (UMconcerns@jenner.com) and for recordings of Shiver’s meetings by the university through Jenner & Block. However, those requests were denied because the university cited that it had no responsive records, according to the lawsuit.
The law firm was hired by U of M to investigate Moore and Shiver’s relationship. The university later expanded the investigation to include the athletic department.
The lawsuit also claims that Shiver requested copies of emails between Moore and athletic director Warde Manuel that contained the words “affair,” “discipline,” “pregnancy,” “baby” and “abortion.” The university denied the request, citing the communication between U of M employees as “exempt information,” according to the lawsuit.
However, Shiver’s legal team argued that the university has not shown evidence that the emails are exempt.
“This public university paid Jenner & Block $12 million to investigate the Sherrone Moore scandal and the abuse, Title IX and Title VII violations within the athletic department and Schembechler Hall, yet now refuses to release the investigation’s findings. It was important for our client to file this initial FOIA lawsuit to ensure the truth and facts come out,” Stroth said.
Shiver appeared on ABC News’ “Good Morning America” in April to discuss her relationship with Moore. In the interview, she said she became pregnant by Moore and sought an abortion after medical complications were discovered about the pregnancy.
Note: The video above previously aired on April 14, 2026.
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