Detroit City Council Committee of the Whole Meeting on Local Option Admissions and Sales Tax - February 19, 2026

This Committee of the Whole meeting, convened by Council President James Tate, focused on two potential revenue sources for Detroit: a local option admissions tax on sports and entertainment events, and a local option sales tax. The session featured presentations from the Citizens Research Council of Michigan (CRC), the Equitable Development Task Force (EDTF), and city administration officials, followed by public comment. No formal votes were taken; the meeting served as a discussion and information-gathering session.

Public Comments & Testimony

• William M. Davis (online caller): Expressed support for starting with an admissions (excise) tax on tickets, arguing it would be easier to implement and would not adversely affect most Detroit residents, as many attendees of downtown events are suburbanites. He suggested a sales tax could be considered later.
• Speaker (name not given, online caller): Opposed the sales tax, calling it a "hoax" and criticizing the utility users tax for being used to pay bonds for the Public Lighting Authority in violation of the city charter. He argued that the city should stop providing tax abatements that reduce general fund revenue.
• Mia Paul (online caller): Opposed new taxes, stating that residents have not been adequately served by the city. She noted that District 3, which she represents, has been underserved and that her council seat was empty during the meeting. She advocated for participatory budgeting instead of new taxes.

Discussion Items

• Citizens Research Council (CRC) Presentation: Eric Lufer and Madou Anderson presented two reports requested by City Council. They explained that Detroit relies heavily on income taxes, with minimal consumption taxes, and that a local option sales tax or admissions tax could help diversify revenue. For a 1% local sales tax, they estimated $72 million annually, but noted significant legal hurdles: a constitutional amendment and statewide vote would be required. For an admissions tax (excise tax on tickets), they estimated $14–$47 million (up to $50 million at 10%), depending on the rate. This tax would require state legislation and a citywide vote, but not a constitutional amendment. They noted that most peer cities already levy such taxes. The presentation included evaluations of equity, neutrality, and administrative efficiency, concluding that the admissions tax is a more feasible near-term option.
• Equitable Development Task Force (EDTF) Presentation: Toy New Reeves, a PhD candidate in economics and EDTF taxation committee member, advocated for a local option sales tax (LOST), coining the phrase "Get LOST" as a policy goal. He argued that LOST would allow Detroit to stabilize local revenues in response to economic shocks, citing examples from states like Georgia and Florida. He noted that over 80% of states with sales taxes allow local options, and that LOST can shift the tax burden to visitors and tourists. He emphasized that Michigan's current tax system is outdated and that Detroit missed collecting millions during the 2023 NFL draft. He supported the CRC's work and called for a statewide conversation on LOST.
• Administration Remarks: CFO Tanya Stodemyer and Director of State Governmental Affairs Fred Durhal voiced support for exploring revenue diversification, noting Mayor Sheffield's commitment to property tax reform and equitable relief. Durhal emphasized the need for a unified voice from Detroit in Lansing, and acknowledged that the process would be challenging but worthwhile. He stated that the administration is analyzing various options, including the governor's executive budget proposal, which keeps revenue sharing flat. Stodemyer noted that the cost of pursuing the process has not yet been quantified.
• Councilmember Questions and Comments: Multiple councilmembers engaged with the presenters. Councilmember Letitia Johnson asked about the methodology behind the $72 million sales tax estimate and the legal distinction between excise and sales taxes. Councilmember Renata Miller questioned the feasibility of a statewide vote for a Detroit-specific sales tax, noting that only 24 of 273 Michigan cities have a local income tax. Councilmember Gabriela Santiago Romero expressed support for new revenue tools, linking the conversation to broader state preemptions limiting Detroit's self-governance. Councilmember Angelo Bitfield Callaway asked about the process for a legislative excise tax versus a constitutional amendment, referencing the recent cannabis excise tax. Councilmember Pro Tem Mary Waters (likely refers to Pro Tem Young) asked about the need for a constitutional amendment for a local sales tax and the impact on the streamlined sales tax agreement. He also raised concerns about regressivity and the timing of such a tax, suggesting the city should wait for a more diverse tax base. Councilmember Denzel McCampbell clarified the steps needed for each tax and asked about the possibility of progressive taxes like a CEO pay gap tax, noting that most new taxes require state legislative approval.

Key Outcomes

• No votes or formal decisions were made during the meeting. The session was informational and exploratory.
• Council and administration expressed alignment on the need to diversify revenue sources and explore both the admissions tax and local option sales tax.
• Next steps include continued analysis by the city, potential further studies by CRC (e.g., income inequality impact), and coordinated advocacy in Lansing. Councilmember Santiago Romero offered to participate in state-level discussions.
• The meeting adjourned at approximately 4:45 PM to allow for the subsequent City Planning Commission meeting.