DETROIT (WXYZ) — Is it time for local sales taxes in Detroit? City council is exploring the idea. It recently commissioned a study to determine the viability of a myriad of tax options, including an amusement tax.
It would essentially be a sales tax for admission to sporting events, concerts, and other events that draw tourists.
“This report essentially would do a deep dive to let us know the legal barriers we face, the legislative barriers we face, and more importantly, if we overcome them, how much money a hotel tax, an entertainment tax could generate for the city of Detroit,” Council President Mary Sheffield said.
Sheffield says the Citizens Research Council of Michigan will conduct that study. Its president says Detroit is one of the rare cities that have four major sports teams playing within its limits.
INTERVIEW: Detroit City Council President Mary Sheffield speaks on possible entertainment tax
“But without a local sales tax or amusement tax, the city is not benefiting from that in any substantial way,” Eric Lupher said.
This is not the first time City leaders have given tax options consideration. Councilwoman Angela Whitfield Calloway commissioned a report on the potential impacts of an amusement tax from the Council's Legislative Policy Division on December 14, 2023.
One Citizens Research Council of Michigan study found that an amusement tax with a flat $3 fee on tickets would raise nearly $8 million from Tigers and Lions games and concerts held at Ford Field or Little Caesars Arena based on 2022 attendance records.
The additional revenue could be used to shore up city services or lower property taxes for residents.
Detroiter Lynn Marie Smith is on board with that idea.
“When people come into town, their safety, their enjoyment, we want them to have that, but we also, as the taxpayers and the residents, we should be able to enjoy and recoup some of that money back,” Smith said.
We caught up with some Tigers fans from St. Clair Shores for their take on the issue.
“Would a sales tax or taxes on Tigers tickets keep you from coming Downtown?” I asked.
“Probably not. Not unless the taxes were really high,” Lee Balchedor said.
“We need to support our city,” Lynn Johnson said.
“And we will. We will continue to do it.” Jesse Parker added.
Lupher explained the hurdles that would lie ahead.
“Local governments cannot levy a tax unless the state authorizes it. So, you have to get 56 legislators, 19 senators, and get the governor to sign off on it. Then come back to City Council, say this is a good idea, let’s have Detroit voters vote on it,” Lupher said.
State Senator Sylvia Santana, a Democrat, released this statement:
I am currently collaborating with Senator Mallory McMorrow on the development of the amusement tax bill. We are exploring implementation strategies and engaging in discussions to shape the policy framework. Additionally, discussions are ongoing on how to best leverage the popularity of Detroit as a tourist destination.
GOP State Representative Donni Steele from Orion Township provided this statement:
Democrats are proposing to place a tax on fun! The proposal is to place taxes on already expensive entertainment tickets – amusement parks, football games, and concerts. There is no limit to Democrats’ insatiable appetite to spend and raise taxes for additional pork projects for cities outside our districts. We as a state government should be funding infrastructure, schools, and safety for all Michiganians. I am most definitely opposed to an amusement tax being imposed on residents of Oakland County and all of Michigan.
Detroit’s City Council should get the study back this summer. They’ll chart out their next steps based on the findings.
