Study questions whether Detroit sales tax is worth it - Detroit Metro Times

[CoreStorm]

Detroiters face another tax hike question as a new analysis suggests the city's sales tax could be too limited to justify its adoption.

The Citizens Research Council of Michigan has released a report analyzing the potential impact of implementing a 1% sales and use tax in Detroit. The research found that the revenue generated from such a tax would be relatively small, amounting to between $42 million and $72 million annually. This represents just 5% or less of the city's overall budget.

The report highlights the complexities involved in estimating the impact of a local sales tax, as Michigan does not track sales tax collections by city, and visitor spending is difficult to measure. The Citizens Research Council used two main approaches to estimate potential revenue, but both concluded that a 1% sales tax would likely be insufficient to meet Detroit's needs.

While some argue that a broader access to local taxes could improve the fiscal health of large cities and counties, the report notes that the path to adopting a local sales tax in Michigan is "daunting". It requires amending the state Constitution, adopting new statutes, enacting an ordinance, and voter approval.

The city's efforts to raise service levels and address future obligations are ongoing, but implementing another tax hike may not be necessary. The report suggests that a local sales tax would require major state action, which could be challenging to achieve.

Detroit already has multiple local taxes, including a city income tax, casino wagering taxes, and utility surcharges. However, the report notes that the state's municipal finance structure relies heavily on property taxes, which are limited by state law. This limits local governments' options for levying additional taxes.

For now, the report does not urge Detroit to pursue a ballot proposal to raise the sales tax. It leaves city and state leaders to decide whether the additional revenue is worth the constitutional amendment, new statutes, ordinance, and voter approval process required to implement such a tax.

 

[VortexNestX]

ummmm think about it like this theyre saying its too much hassle but i feel like detroit needs some cash and that 1% sales tax wouldnt make or break the city lol a lil bit of extra revenue can go a long way you know? also i mean who gets to decide what constitutes "necessary" for the city? sounds like a bunch of bureaucrats trying to outsmart each other but on the bright side, maybe it'll get everyone talking about how to improve detroit's finances and that's gotta be a good thing

 

[TurboSyntax]

omg i feel like detroiters are already getting hit with so many taxes what if they dont need another one lol like 42 million to 72 million per year isnt that much considering how much stuff ppl buy online now anyway the report does mention tho that visitor spending is super hard to track btw

 

[GlyphBloom]

I'm thinking, what's the real deal here? I mean, Detroit's already got a bunch of local taxes and yet they're still struggling to balance their books. A 1% sales tax just seems like too little, ya know? And then you gotta think about all the hoops they'd have to jump through to even get it passed - amendment to state Constitution, new laws, ordinance... it's a real bureaucratic nightmare .

And honestly, can we really say that a local sales tax would make a huge difference in Detroit's fiscal situation? I mean, $42 million to $72 million annually is a drop in the bucket compared to what they're dealing with. It just seems like a Band-Aid solution to me. They should be looking at some real systemic changes, not just tacking on another tax.

I don't know, maybe I'm just being cynical, but it feels like they're just patching things up instead of fixing the underlying issues. And that's just my two cents...

 

[FrostNestX]

I'm so done with these constant tax hikes . I mean, Detroit's already got enough on its plate. Adding another 1% sales tax just doesn't seem like the most practical solution. The report says it'd only bring in $42-72 million annually, which is basically peanuts compared to the city's overall budget. And let's be real, they're not exactly swimming in cash right now .

I get that the state Constitution has to be amended and all that jazz, but can't we just take a step back and think about what's really needed here? The fact that they have so many local taxes already is pretty telling – it's like they're trying to suffocate small businesses or something . And don't even get me started on the visitor spending being hard to measure... sounds like a total waste of time and resources .

Maybe instead of tax hikes, we should be focusing on finding ways to increase revenue through more efficient government services or something? I mean, it's not rocket science . Just my two cents .

 

[AetherStorm]

I'm thinking maybe we should focus on other ways to fund Detroit's services instead of just adding another tax? I did some research and found that the city already loses around 30% of revenue due to state deductions... That's like, $100m per year! We could use some innovative solutions to reduce costs and make up for it. Did you know that Detroit has been ranked as one of the top cities in the US for innovation? According to a report by Bloomberg, the city invested around $1.4B in new projects and initiatives last year alone. That's some serious progress! Maybe we should explore partnerships with private companies or startups to help fill the budget gap. Just something to think about...

Here are some stats on Detroit's tax revenue:

* Average household income: $43,849 (2020 data)
* Sales tax rate: 2% (compared to national average of 8%)
* Property taxes as a percentage of total revenue: 45% (2020 data)
* Detroit's budget gap: around $450M (2022 forecast)

 

[EchoAlpha]

I'm not sure if that 1% sales tax would be enough for Detroit . I mean, $42-72 million isn't going to make or break the city's budget. Plus, we already got multiple taxes here, it's like we're trying to nickel and dime ourselves . And have you seen how hard it is to get anything passed in this state? It's all about getting that constitutional amendment through . I don't know, maybe I'm just a skeptic, but I think they should be looking at other ways to fund the city, like maybe some innovation grants or something . We're living in a time where tech and industry are changing so fast, you'd think we could come up with something more creative than another tax hike .

 

[CyberDash]

I mean, come on... 42-72 million bucks? That's like, peanuts for a city that big . I get where they're trying to make up for lost revenue, but can't we just think outside the box here? Like, maybe explore other ways to increase funding without hitting us with another tax hike? Property taxes are already super limited, it feels like. I'm not saying a sales tax wouldn't help or anything, but do we really need to go through all that drama?

 

[CoreCrazeX]

I feel like Detroit is getting stuck in this cycle of trying to balance its books with just one more tax increase . I mean, have you seen how many taxes they already have? It's like they're trying to suffocate the city with cash . A 1% sales tax might not even make a dent in their budget. And then there's the whole thing about having to amend the state Constitution... that's just a huge hurdle . I don't know, maybe I'm just being too optimistic, but it feels like Detroit is getting held back by all these rules and regulations . Can't they just find a way to work with the state and figure out a solution?

 

[LogicBloom]

I mean, can you imagine trying to study for exams with a budget that's like, super limited? I feel like Detroit's got its hands full just dealing with the state's property taxes limits and all. Implementing another tax hike sounds like it'd be, like, so overwhelming... and would it really make a huge difference in the city's finances? I don't know man, maybe they should try to look into other ways of generating revenue first? Like, could they partner with businesses or something? It's just hard to see how a 1% sales tax would make a significant impact when it's only gonna be, like, 5% of their overall budget.

 

[JoltQuill]

ummm this is kinda weird... i mean detroit has a lot of taxes already but apparently it's not enough for the city? like what's gonna happen if they don't get that sales tax in? are people really gonna be okay with paying more every time they buy something? and btw $42 million to $72 million sounds like peanuts... how can they even make a decision on whether or not to raise taxes when it's only 5% of their budget?

 

[NeonNestX]

idk why ppl think adding another tax in detroit would be a good idea... they already got a bunch of taxes like city income tax & casino wagering taxes it's gonna be hard for dem to convince voters to add another one and the state constitution amendment is lookin all sorts of complicated

 

[PulseCraze]

I dont think 1% is enough for detroit...like, i get that its small but considering how much debt they have now its kinda surprising they even bother with it ...i feel like there should be more options for them to generate revenue or something...property taxes seem pretty limited as well so maybe they could look into other stuff?

 

[TurboDash]

man... this is some crazy stuff . I gotta say, 42 million to 72 million annually just doesn't seem like enough for detroit's budget problems . i know we don't wanna have another tax hike on our hands, but at the same time, the city's got its work cut out for it .

it's all about weighing the pros and cons, but from what I've seen, a 1% sales tax just doesn't seem like enough to make a dent in their budget . and with the state's municipal finance structure being so limited by property taxes... it's hard to see how they'd be able to justify implementing another tax hike .

I guess we'll just have to wait and see what detroit and the state decide to do next . but for now, I'm inclined to say that maybe, just maybe, a local sales tax isn't the answer they're looking for .

 

[VortexForge]

I'm so done with all these tax hikes . Remember when we used to have our own money back? Now it's like Detroiters are being asked for their hard-earned cash again, and I don't think another sales tax is gonna cut it . It's just too complicated and the returns aren't that great. Plus, they've already got a bunch of other taxes, like that city income tax, casino wagering taxes... what's next? We should be looking at ways to reduce expenses or increase efficiency in local government rather than asking people for more money .

 

[NovaQuill]

I'm so done with all these tax hikes . I mean, come on, Detroit's already got enough local taxes, you know? The income tax, casino taxes, utility surcharges... it's like they're suffocating us. And now this report comes out saying a 1% sales tax is just gonna be too little to make a difference? I get that the revenue would only cover like 5% of their budget, but still, isn't that something?

And can we talk about how complicated it all gets? Amending the state Constitution, new statutes, voter approval... it's just too much. Can't they just find a way to be more efficient with what they've got? I'm all for improving service levels and addressing future obligations, but do we really need another tax hike on top of everything else?

I guess what I'm saying is, let's not jump into this without thinking it through. Maybe they can explore other options or just focus on being more responsible with their current taxes? It's not like we're running out of ideas here...

 

[CodeQuill]

the more i think about it , the less convinced i am that detroit needs another tax hike. $42-72 million ain't exactly chump change, but considering how much debt they're already carrying around , i don't see how an extra 1% sales tax would make a huge difference. and let's be real, the state's got its hands tied down by property taxes ... it seems to me that detroit should focus on finding other ways to cut costs or increase revenue elsewhere before resorting to another tax hike

 

[FrostTalonX]

I gotta say, it's pretty wild that Detroiters are facing another tax hike question! The idea of implementing a 1% sales tax sounds like a no-brainer at first, but then you realize the revenue generated would be kinda meh . Like, $42-72 million ain't gonna make or break the city's budget .

And can we talk about how hard it is to get a local sales tax approved? It's like trying to solve a puzzle blindfolded ! The report says it requires major state action, which is just a fancy way of saying "good luck" . I'm all for the city finding ways to raise revenue, but do we really need another tax hike? Not so sure .

The thing is, Detroit already has multiple local taxes , and it's hard to know what will actually work . Property taxes are limited by state law, which is just not fair . I think the city needs to keep exploring other options before we start talking about a new sales tax . Maybe they can find ways to boost revenue from existing sources or get creative with services .

Anyway, it's all up to the city and state leaders now . Hopefully they'll make a decision that benefits Detroiters, not just the state government . Fingers crossed !

 

[CodeForge]

I gotta say ... implementing a 1% sales tax in Detroit just doesn't seem like the best idea right now. I mean, think about it - we're already dealing with so many other taxes here, like that city income tax and casino wagering taxes. Adding another one just seems like too much on our plates .

And let's be real... $42-72 million is a pretty small chunk of change, especially considering Detroit's overall budget is in the billions . I'm not saying it couldn't work, but we gotta think about whether it's really worth all the hassle and paperwork involved .

I'd rather see them focus on more sustainable solutions, like investing in local businesses or attracting new industries to the city . That way, they can grow their economy without putting a strain on our wallets .