How Detroit's Entertainment Tax Could Add $47 Million to Local Economy

A proposed ticket tax in Detroit could potentially yield between $14 million and $47 million, as indicated in a recent report by the Michigan Citizens Research Council. Released on Wednesday, the study examines the implications of introducing a tax on local entertainment venues. Revenue generated from ticket sales for concerts, sports, and other events could assist in reducing property taxes, a key obstacle for businesses and families in the city.The Detroit City Council’s Legislative Policy Division commissioned this research to evaluate the feasibility of an admissions tax and a local-option sales tax. Notably, Detroit uniquely hosts all four major sports teams while also welcoming emerging franchises, such as a WNBA team. Report authors highlighted that while hosting massive events boosts tourism, it also places additional strain on city services.Council President Mary Sheffield advocates for this tax as crucial for enhancing city revenue, supporting infrastructure, and public safety. She suggests a potential “half-penny” sales tax, similar to that approved in Columbus, Ohio. Implementing this tax necessitates state legislative authorization and local voter approval.