Livonia, MI, Sept. 3, 2025 – The Citizens Research Council of Michigan Wednesday released a study examining how an admissions tax on sports and entertainment venues could help offset some of the costs of providing public services that support these venues and their visitors.
The study, commissioned by the City of Detroit’s Legislative Policy Division, focuses not only on Detroit but also on several other Michigan cities that could benefit from revenues generated by an admissions tax. These revenues could be used to provide benefits such as property tax relief and to invest in attracting future national events to Michigan.
Among the many issues the report, Evaluating Local-Option Admissions Taxes in Michigan, examines are the economic impact of events, admission tax revenue estimates, tax design and policy considerations, revenue generation from comparable cities, the advantages and disadvantages of local-option taxes, and the viability of Michigan having an admissions tax.
In a Nutshell:
• Detroit is one of the few major cities in the U.S. that does not levy an entertainment/amusement/admissions tax. While this means the city is not taking advantage of a revenue source commonly used by other cities, it also means that the city can learn from the processes and experiences of others.
• Depending on how an authorizing state law would define the base and the tax rates authorized, Detroit could yield upwards of $50 million from an admissions tax.
• Revenue from an admissions tax could be used to enhance city services, diversify the city’s revenue streams, provide property tax relief, and put into a fund that could be used to draw major national events to the city.
“Several Michigan cities serve as regional hubs for culture, commerce, sports teams, concerts, and conventions,” said Eric Lupher, president of the Research Council, adding there are even more that host events that, relative to their size, similarly incur service costs.
“Detroit stands alone as the largest city in this role, with four major professional sports teams, concert halls, theatres, and other venues that attract attendees from throughout Southeast Michigan and beyond. A local-option admissions tax offers Detroit and other Michigan cities a strategic tool to diversify revenue, reduce resident tax burdens, and ensure that economic activity benefits municipal sustainability,” Lupher noted.
“While it cannot solve all fiscal challenges, a local-option admissions tax provides a pragmatic, targeted means of recovering costs and investing in core services. With careful legislative drafting, public education, and transparent allocation, this tax could strengthen Detroit’s financial position and improve fairness in urban tax policy.”
The study concludes that while a new state law would be needed to authorize local admissions taxes, the state legislature should consider allowing cities to impose an admissions tax to enhance revenue streams, help cover costs associated with hosting events, and provide property tax relief.
Paper copies are available upon request.
