Detroit local sales tax could raise $72 million but legal hurdles remain

Detroit is exploring a local sales tax to generate $72 million annually, as analyzed by the Citizens Research Council of Michigan at the request of the City Council. Despite its potential, the tax would only contribute modestly to the city's budget and faces significant legal hurdles, including constitutional and legislative changes. The shift to online shopping and residents purchasing big-ticket items outside the city complicate reliable revenue capture. The Council's findings suggest the effort to implement a sales tax may not be justified, while an admissions tax could offer a more viable alternative.