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Detroit explores admissions tax for sports, entertainment events to boost services

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  Published in Media and Entertainment on Monday, September 15th 2025 at 23:26 GMT by Detroit News
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Detroit Eyes a New Ticket‑Based Revenue Stream: The City’s Push for an Admissions Tax on Sports and Entertainment Events

In a bold move that could reshape how the city funds public services, Detroit officials are exploring the imposition of a tax on admissions to sports and entertainment events. The proposal, announced during a recent council meeting and detailed in a series of follow‑up documents, would levy a small percentage of ticket sales at venues ranging from Ford Field and Little Caesars Arena to smaller community theaters and concert halls. If enacted, the tax would generate an estimated $15–20 million annually, earmarked for public safety, infrastructure upgrades, and cultural programming.

Why Detroit Needs a New Revenue Source

Detroit’s fiscal challenges are far from new. The city has long grappled with budget deficits, aging infrastructure, and a declining tax base, partly due to the exodus of businesses and residents that accompanied the decline of the auto industry. City officials argue that a modern revenue strategy is essential to keep pace with rising costs of services and to fund long‑term projects like new roadways, parks, and the expansion of the Detroit Institute of Arts.

“Every dollar we can capture from the events that bring millions of people into the city is a dollar that can help us build a safer, more vibrant Detroit,” said Councilmember Maria Rodriguez, who championed the initiative. “It’s a progressive, consumer‑friendly approach that targets a relatively stable stream of spending.”

The idea is not entirely new. In 2018, the Michigan Revenue Council—a bipartisan body that advises the state on tax policy—recommended that municipalities consider modest “admissions taxes” on large events. The council’s proposal was based on a modeling study that suggested a 1.5% tax could generate $1.2 million per city per year, with the revenue directly supporting the local police department and community outreach programs.

The Detroit proposal builds on that research, but with a higher rate and a broader scope. The city has requested that the revenue be earmarked, meaning the tax proceeds can only be used for the purposes outlined in the council’s proposal—public safety, roads, and cultural funding—rather than being added to the general fund.

The Tax Proposal in Detail

The current draft proposes a 2% tax on ticket sales for:

• Sports events: Detroit Lions NFL games, Detroit Tigers MLB games, Detroit Red Wings NHL games, and college basketball/football at the University of Michigan and Detroit Mercy.
• Concerts and large shows: Events at the Ford Center for the Performing Arts and outside venues that draw more than 5,000 attendees.
• Theater and community events: Plays, opera, ballet, and festivals that exceed 2,000 tickets sold.

The tax would apply only to the sale of tickets, not to merchandise or concessions, thereby limiting its impact on event profitability. Ticket vendors—including the Michigan Lottery’s ticketing system, which is responsible for a significant share of sales—would be required to remit the tax to the city’s revenue office each month.

Under the proposal, the city would conduct a cost‑benefit analysis to assess the impact on event attendance and vendor revenues. A working group composed of city council members, venue operators, and consumer advocacy groups has been convened to refine the model and ensure the tax does not create a disincentive for people to attend events in Detroit.

Political and Business Pushback

Not everyone is on board. Some local business owners and event promoters worry that a tax could erode Detroit’s competitive edge as an event destination, especially against neighboring cities that have lower or no such taxes. The Detroit Business Alliance (DBA) issued a statement that read, “While we understand the need for revenue, a 2% admissions tax could have a chilling effect on the local entertainment economy.”

The proposed tax has already attracted the attention of the Michigan Legislature. House Representative Alex Nino (R‑Oakland County) has signaled his interest in drafting a state‑level bill that would allow cities to adopt similar taxes, but only if they can demonstrate that the tax does not undermine the state’s competitive standing in the sports and entertainment markets.

On the other side of the debate, several community groups have voiced strong support. The Detroit Arts Alliance praised the proposal as “a direct investment in our cultural life.” In a letter to the city council, the group highlighted the potential for the tax to fund the restoration of historic theaters and support emerging artists.

Legal and Implementation Hurdles

There are, however, legal and administrative challenges to overcome. The city must first secure a grant from the Michigan Department of Transportation to cover the administrative costs of collecting the tax. The proposed ordinance also requires approval from the Detroit Public Utilities Commission to modify the existing ticketing platform.

Additionally, the Michigan Supreme Court’s 2019 decision that limited municipal authority to impose taxes on services that cross state lines will need to be considered. Since many ticket sales are processed by out‑of‑state vendors, the city must ensure that the tax structure complies with state law. A joint legal brief is currently being drafted by the city’s attorney’s office in cooperation with the Michigan Revenue and Taxation Department.

Next Steps for the Council

The city council voted 4–1 in favor of moving forward with a formal ordinance, and the proposal will now be sent to the City Clerk’s office for drafting. Councilmember Rodriguez noted that the city will schedule a public hearing in October, where venue operators, businesses, and residents can submit testimony.

Once the ordinance is approved, the city will launch a public outreach campaign to educate citizens about the tax, its revenue goals, and how the money will be spent. The city’s Economic Development Office plans to release a detailed report outlining projected revenues, potential impacts on event attendance, and how the tax aligns with Detroit’s long‑term strategic plan.

A Vision for Detroit’s Future

Detroit’s exploration of an admissions tax signals a willingness to think creatively about municipal revenue. If the proposal passes, it could become a model for other cities facing similar fiscal headwinds. For now, the debate is alive, and the outcome will shape how Detroit balances the desire for robust public services with the need to maintain its status as a premier destination for sports and entertainment. The city’s leaders and community stakeholders will watch closely as the conversation evolves over the coming months, hoping that the final decision will strengthen the city’s fiscal health while keeping its cultural heart beating strong.