The Detroit Metro Times’ Steve Neavling reports that an independent research group is suggesting that the City of Detroit impose an “admissions tax” upon each and every one of the city’s entertainment events in order to raise revenues and decrease residential property taxes:
The Citizens Research Council of Michigan released the study Wednesday, pointing out that “Detroit is one of the few major cities in the U.S. that does not levy entertainment/amusement/admissions tax.”
Detroit has four professional sports teams downtown — the Tigers, Red Wings, Pistons, and Lions. Detroit City Football Club, a professional soccer team, is building a new stadium in Southwest Detroit set to open in 2027. The city is also home to dozens of entertainment venues, such as Fox Theatre, the Fillmore Detroit, Little Caesars Arena, the Masonic Temple, Detroit Opera House, the Fisher Theatre, the Aretha Franklin Amphitheatre, and Saint Andrew’s Hall, among many others.
While the city has missed out on revenue from the tax, the report said Detroit can learn from its experiences.
“Several Michigan cities serve as regional hubs for culture, commerce, sports teams, concerts, and conventions,” Eric Lupher, president of the Citizens Research Council, said. “Detroit stands alone as the largest city in this role, with four major professional sports teams, concert halls, theaters, and other venues that attract attendees from throughout Southeast Michigan and beyond.”
Detroit could raise more than $50 million a year with an admission tax, depending on the rate and how it’s applied. A 3% tax on admissions would bring in about $14.1 million, while a 10% rate could generate as much as $36.9 million, according to the report.
The study broke down how much each of Detroit’s professional sports teams could contribute based on ticket sales. In the most recent seasons, an admissions tax would have generated:
- Lions (Ford Field): $0.99M at 3% to $3.3M at 10%.
- Tigers (Comerica Park): $1.95M at 3% to $6.5M at 10%.
- Red Wings (Little Caesars Arena): $2.31M at 3% to $7.7M at 10%.
- Pistons (Little Caesars Arena): $1.29M at 3% to $4.3M at 10%.
Continued; I’m not a fan of having to pay even more than a $100+ ticket and $40+ for parking in order to attend a sporting event or concert downtown.
I’m a big believer in paying one’s taxes to fund services like roads, emergency services, schools, etc. even if I don’t use them as a civic duty, but I don’t view imposing an arbitrary tax upon already-stressed sports fans or concert fans as a wise move.
Luckily…
To impose a local admissions tax, state lawmakers would need to authorize it, the report states.