Detroit could raise up to $50M a year with admissions tax on sports, entertainment events, study finds

Detroit could generate tens of millions of dollars each year with a tax on tickets to sports and entertainment events, raising revenue that could reduce property taxes, fund city services, and help attract national events, according to a new study.

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%.

At their attendance peaks in the past decade, Detroit’s four teams could have generated more than $28 million from a 10% admissions tax.

That estimate doesn’t include the numerous other concert venues in Detroit, or big music festivals such as Movement. Revenue could also be generated at events like the Detroit Grand Prix.

The revenue from the tax could be used to bolster city services that are stretched thin during major events, to diversify Detroit’s tax base, or to reduce the city’s notoriously high property taxes.

“An admission tax has the potential to contribute meaningful property tax relief to Detroiters who pay among the highest tax burdens in the nation,” the study noted.

It estimated that admissions tax revenue could lower Detroit’s property tax millage by as much as 5.7 mills.

Lupher said a local admissions tax would be “a strategic tool to diversify revenue, reduce resident tax burdens, and ensure that economic activity benefits municipal sustainability.”

Lupher added, “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 report also suggested dedicating a portion of the revenue to a fund for attracting major events, such as the NFL Draft, NCAA tournament games, or even a Super Bowl. The idea is “self-perpetuating as major events would draw attendees to pay the tax and position the city to draw new events.”

To impose a local admissions tax, state lawmakers would need to authorize it, the report states.