Detroit City Council Committee of the Whole on Local Option Admissions and Sales Tax - February 19, 2026
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.
Meeting Transcript
Please call the roll. Councilmember Scott Benson. Councilmember Letitia Johnson, present. Councilmember Denzel Anton McCampbell. Councilmember Renata Miller. Councilmember Gabriela Santiago Romero. Present. Councilmember Mary Waters. Present. Councilmember Angelo Bitfield Callaway. Council President Pro Tem Call Me Young the second. Here. Council President James Tate. Mr. Chair, you have a corn present. All right, excellent. We'll wait for the president to be seated and we will continue from there. Sorry, good to see you. Thank you all for being here. Apologies for my tired meeting back there. All right, so what we're gonna do today, I don't have the agenda in front of me. What we plan on doing having first is uh allowing uh CRC to uh well first I'm sorry, LPD. LPD to kind of set the stage, you know, why we're here, uh, how we got to this point, what's to be expected in terms of the um discussion that we're gonna have today, and then we wanted the CRC to uh roll out you know um commentary summarize um the two reports that were provided to this body uh at the request of uh members. Uh then we're gonna have members of the uh ED the Equitable Development. I always say think the D stands for Detroit. I always want for Detroit, right? Um we have them there, they're gonna be here as well uh at the request of Member Johnson to provide some commentary because they've been digging into this and you know, task force are not designed just to sit around just talk to each other, it's really designed to move towards some type of action, whether it's policy uh and or fill in the blank. And so we want to give them an opportunity to speak as well. Um, and then we're gonna go to public comment uh to allow the public to uh provide uh commentary on what they heard. Uh I believe we also have uh members of the administration who are going to be here as well uh to speak and provide just a bit of uh insight on where uh the administration stands on at least these two particular uh topics uh regarding tax reform. So with that being said, um we're gonna make sure we have an opportunity for QA as well in between there, but that might as well get started now. Mr. Corley, thank you for uh setting us off. Thank you, um council president Tate. And before we go, I'm sorry if the clerk can know that we've been joined by member Miller. Thank you so much, Ms. Corley. Afternoon. Uh Council President Tate and the City Council members. I'm Irv Corley of the Let's say the Policy Division, or LPD. Thank you, thank you for having this committee of the whole meeting on two very important topics. A local option admissions tax in Michigan cities, a local option sales tax policy for Detroit. As a reminder, City Council approved a resolution on April the 22nd, 2025 authorizing the LPD to contract with the Citizens Research Council of Michigan or the CRC to complete studies on a local option admissions tax on sports and various entertainment activities and a local options sales tax policy. I would like to introduce Mr. Eric Lufer, President of the CRC, and his revenue associate, Miss Madou Anderson, who are here to provide summaries of their reports on these very important topics. It is also important to note that the CRC reports are on these topics are on both LPD's website and CRC's website. Um also Mr. President, there's representatives here from the Michigan Municipal League that may want to offer some comments as well. Um with that, Mr. President, I would like to turn it over to the CRC representatives.
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