DETROIT (Michigan News Source) – The city of Detroit could raise an estimated $72 million a year if it implemented a 1% sales tax, according to a recently released report.

The Detroit City Council hired the Citizens Research Council of Michigan to look into what a city-wide sales tax would mean. The report was released to the council this week during their meeting.

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For Detroit to authorize a sales tax, it would require amending the state Constitution, adopting state statutes authorizing local sales and use taxes as well as the city enacting its own ordinance and then voters approving it, according to the report.

The city’s general fund budget had $1.45 billion in revenues in 2024-25. The general fund’s largest stream of revenue was the city income tax that brought in about $422 million in 2024-25.