Report: Entertainment Tax Could Generate $47 Million for Detroit

September 4, 2025

A new report by the Michigan Citizens Research Council reveals that implementing an admissions tax on sports and entertainment venues in Detroit could generate between $14 million and $47 million annually, potentially allowing the city to reduce its high property taxes. The report, commissioned by Detroit's Legislative Policy Division, highlights how the city bears significant costs when hosting major events at its numerous sports venues and entertainment facilities. Detroit City Council president Mary Sheffield supports such a tax initiative, along with considering a 0.

Who is affected

Detroit residents and property owners
Sports teams (Lions, Tigers, Red Wings, Pistons)
Entertainment venues and theaters in Detroit
Visitors and attendees of sporting events and entertainment venues
Detroit City Football Club
Neighborhoods that may have public safety services redirected during major events

What action is being taken

The Michigan Citizens Research Council is researching and modeling potential admission tax impacts
Detroit's Legislative Policy Division is commissioning studies on admission and local-option sales taxes
Detroit City Council President Mary Sheffield is advocating for new tax measures to offset property taxes
Researchers are analyzing the potential revenue generation from different tax rates on entertainment venues

Why it matters

The tax could generate between $14.1 million (at 3% rate) to $46.9 million (at 10% rate) annually
Revenue could help lower Detroit's property taxes, which are cited as a major barrier to attracting businesses and families
The tax would help offset costs the city bears for hosting major events, including policing, sanitation, and transportation
It addresses the financial imbalance where Detroit provides services for events that benefit the broader region
Detroit is one of the few U.S. cities hosting all four major sports but lacks an entertainment tax common in other major cities

What's next

Detroit lawmakers would need to obtain authorization from state lawmakers, as Michigan law requires express authorization for local taxes beyond property taxes
The city council would need to agree on an ordinance outlining the tax structure
A majority of local voters would need to approve the tax in a general election

Read full article from source: Michigan Chronicle