Detroit Considers 1% City Sales Tax to Raise $72 Million Annually

Detroit is considering implementing a 1% local sales tax to raise up to $72 million annually.
The city currently has no local sales tax; Michigan’s statewide sales tax is 6%.
Detroit faces financial challenges as federal COVID relief funds run out and seeks new revenue sources.
Alternatives to a local sales tax include raising the statewide sales tax, an entertainment tax, or reforming state funding for local governments.
Enacting a local sales tax would require a state constitutional amendment, new legislation, a city ordinance, and voter approval.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.