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CRC study: Detroit could raise $14M–$47M from an admissions tax but it would not be a 'game changer'
Summary
A Citizens Research Council study told Detroit’s Budget, Finance and Audit committee that a local option admissions (amusement) excise could generate roughly $14 million at a 3% rate and up to $47 million at 10%, but presenters warned the revenue would help but not transform Detroit’s overall budget and that state authorization and a public vote would be required.
Detroit — The Citizens Research Council of Michigan told the City of Detroit’s Budget, Finance and Audit Standing Committee on Oct. 1, 2025, that a local option admissions (amusement) excise tax could generate an estimated $14 million at a 3% rate and as much as $47 million at a 10% rate — but that the revenue likely would not be a budget “game changer.”
"A 3% tax could bring in at least $14,000,000 ... and a 10% tax would bring in upwards of $47,000,000," Eric Luper, president of the Citizens Research Council, said during the presentation. Luper and Legislative Policy Division staff emphasized the study modeled large venues such as Comerica Park, the Fox and Fisher theaters, and major concerts and festivals rather than many smaller events.
The report framed the tax as an excise on tickets rather than a sales tax and listed evaluation criteria including adequacy of revenue, horizontal and vertical equity, neutrality (whether patrons or entertainers would change behavior), and administrative efficiency. Luper said an excise structure and carefully defined exemptions reduce legal risk and administrative burden for ticket sellers and the city.
The study identified common exemptions used elsewhere — K–12 events, many nonprofit presentations, government events and small low-price events — and noted cities sometimes exempt venues under a size threshold. Luper said the state’s legal framework requires legislative authorization before a local admissions tax can be levied and that, depending on the statutory design, a city ballot measure could also be required.
"If the legislature gives it the thumbs up then subject to Section 31, Article IX of the Michigan Constitution, it has to go to a vote of the people," Luper told the committee, describing the multi-step process the CRC used to evaluate feasibility.
Council members pressed on equity and market impact. Councilmember Gabriela Santiago Romero said she supported continued study and urged coordination with other cities and state legislators to improve the chance of authorization. The committee’s chair said he remains skeptical and raised concerns about access for lower-income residents.
Luper and LPD staff emphasized that, while the revenue could be dedicated to public safety, recreation programs or property tax relief, the modeled gains would only partially offset Detroit’s broader fiscal needs. "It's helpful — that's money you don't otherwise have — but it's not going to be a game changer," Luper said.
After the presentation and questions the committee moved to receive and file the CRC study so staff can make the materials available and continue analysis. The CRC report and slide deck are published on the CRC and LPD websites, presenters said, and the committee did not vote on any ordinance or rate at the hearing.
Next steps: the council received the report for the record; any city action to pursue an admissions tax would require a request to the state legislature to authorize a local option tax and, depending on how the state statute is written, likely a citywide vote.
(Quoted speakers: Eric Luper, president, Citizens Research Council of Michigan; Irv Corley, Legislative Policy Division; Councilmember Gabriela Santiago Romero; Chair.)
