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Council debates land-value tax and local-option sales/entertainment levies as revenue options

2823112 · March 26, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Council members pressed OCFO on a proposed land-value tax, local-option sales tax and entertainment excise taxes as ways to diversify Detroit's revenue. Council added a land-value tax study to the closing executive session and asked OCFO for a local-option sales tax analysis.

Council members used the OCFO budget hearing to challenge the administration to identify new revenue streams beyond income, property, utility-user and casino wagering taxes.

Council member Colmi Young asked OCFO for a detailed revenue estimate for a land-value tax (split-rate tax). OCFO officials said earlier LVT proposals were modeled to be initially revenue-neutral, shifting taxation from improvements to land to incentivize investment, but that an estimate of resulting additional income-tax growth would have been…

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