good news, looks like i am exempt. I will be responding to the notices of assessment for use tax with this explanation. also i am asking for the best way to report exempt rental revenues on the form 5081.
rental revenue is exempt for rentals over 30 days:
205.93a(1)(b)
Rooms or lodging furnished by hotelkeepers, motel operators, and other persons furnishing accommodations that are available to the public on the basis of a commercial and business enterprise, irrespective of whether or not membership is required for use of the accommodations, except rooms and lodging rented for a continuous period of more than 1 month.
http://www.legislature.mi.gov/(S(ycmmdzpd5ykejqhxac4lpkoq))/mileg.aspx?page=GetObject&objectname=mcl-205-93aresponse on how to report as received from the State of MI:
Unless you also do short term rentals (30 days or less), you should not have to file a return. Not sure why this business is registered. May be for withholding tax? If you have no reason to stay registered for use tax on rentals, you can discontinue the registration retroactively. If you have an account in MTO (Michigan Treasury Online), you can go and discontinue the use tax registration. If you do not have an account in MTO, find Michigan Form 163, complete, sign and mail, and your registration will be adjusted in about seven to ten business days. Hope this is helpful.