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

[Strateg]

Detroit's Sales Tax: A Necessary Sacrifice or a Step Too Far?

The city of Detroit is facing another financial challenge, with some residents questioning whether the proposed sales tax hike is worth it. The Citizens Research Council of Michigan has analyzed the potential impact of a 1% sales and use tax in Detroit, finding that the revenue generated may not be enough to justify the complexities involved.

Currently, Detroiters already pay one of the highest tax rates in the state, with multiple local taxes, including a city income tax, casino wagering taxes, and utility surcharges. The new analysis suggests that adding another tax could raise between $42 million and $72 million annually, but this amount is relatively small compared to the city's budget.

The report highlights the challenges of implementing a local sales tax, citing the need for state action first. This would require amending the state Constitution, adopting new statutes, enacting an ordinance, and voter approval, making it a daunting task.

Detroit faces significant financial obligations ahead, including major infrastructure projects and pension payments. The city aims to improve services and address its needs, but any additional revenue from a sales tax must be carefully considered.

The Citizens Research Council suggests that the state's municipal finance structure relies heavily on property taxes, which are limited by state law. This limitation can make it difficult for local governments in Michigan to levy new taxes, especially in communities with weaker tax bases.

While the report does not urge Detroit to move forward with a ballot proposal, it leaves city and state leaders to weigh the potential benefits against the challenges involved. As the city looks to raise revenue and improve services, it must carefully consider its options and prioritize its financial goals.

The question remains: is the proposed sales tax hike a necessary sacrifice or a step too far for Detroit? Only time will tell if the city's residents and leaders can find a solution that balances their needs with the practicalities of taxation.

 

[Comfortable Cobra]

The thing is, I feel like the city needs to think outside the box when it comes to funding its budget . Adding another tax might seem like an easy fix, but like the report said, there's a lot that goes into making it happen . And honestly, $42-72 million just doesn't seem like enough to make a huge difference in the grand scheme of things .

I'm worried that if they can't get state action on amending the Constitution and all that jazz , it's gonna be a long shot . I mean, the city's already got a lot on its plate with those other taxes . And what about the impact on small businesses and low-income families? It's a delicate balance, for sure .

I'm not saying no to any ideas at all, but we gotta make sure that whatever plan they come up with is gonna make a real difference in people's lives . Otherwise, it's just throwing money around without really thinking about the consequences . Time will tell, I guess...

 

[Creepy]

I think this whole thing is super complicated. They're trying to figure out if raising their sales tax by 1% is gonna be worth it, but then they gotta consider all these other taxes Detroiters already pay, which are like crazy high. It's not just a simple yes or no, right? The state has to get involved and make some changes to the Constitution first, which sounds like a huge deal.

And what really gets me is that this sales tax revenue isn't even that much - between $42 million and $72 million annually. That's not gonna solve all Detroit's problems by a long shot. They're talking about infrastructure projects and pension payments here, which are some serious financial commitments.

I guess my point is, it's hard to say if this sales tax hike is necessary or too much when you gotta consider all these other factors. It feels like they're trying to find a middle ground here, but maybe that's not possible?

 

[Shady Cheese]

meh, thinkin they're gonna solve detroit's problems with another tax like it's gonna make a huge difference the state's all about property taxes anyway should be focusin on findin ways to lower that instead of addin more

 

[Fair Frog]

I gotta say, I'm not sure about this sales tax thing...Detroit's got its hands full already and adding more taxes just feels like throwing salt in the wound . I mean, they're already paying some of the highest taxes in state, so it's hard to justify another one, ya know? And what's with all the hoops they gotta jump through for a simple tax increase? It seems like way too much bureaucracy ...anyway, I guess only time will tell if it's worth it

 

[Wild Wolf]

I think this is one of those situations where you gotta weigh the pros and cons, you know? On one hand, Detroit is really struggling financially and any additional revenue would be a huge help. But on the other hand, adding another tax is a big ask from residents who are already carrying quite a burden. I mean, have you seen their property taxes in Michigan? They're already pretty high!

It's like the city is trying to find that sweet spot where they can get enough money to fund all the projects and services they want without breaking the bank for their residents. And with the state Constitution being a major hurdle to overcome, it's definitely not going to be an easy feat.

Personally, I think the report is right on the money (no pun intended) - more research and planning are needed before making any big decisions. It's great that the Citizens Research Council is doing their part to shed some light on the issue. Let's hope city leaders can use this as a starting point to have a really informed discussion about what's best for Detroit and its residents.

 

[Average Alligat]

Sales tax in Detroit is like putting out fires with wet matches – just not efficient Need state to sort out constitutional issues first before adding more taxes

 

[Telekinetic Shark Confli]

idk what to think about this... i mean, detroits got some financial issues thats 4 sure but adding another tax on top of all the others seems like a lot. its not gonna make or break the city if they dont get it right 1st time. and whats with all the hoops the state gotta jump thru 2 implement a local sales tax? that sounds like alot of red tape

 

[Master C]

Umm... I think they gotta try somethin' . Detroit's in a pretty rough spot financially, and every little bit helps, ya know? But at the same time, it feels like they're tacklin' this tax thing all wrong. They're just gonna hike the sales tax and hope for the best? That don't sound like a solid plan to me .

I think what I'd do is look into other ways to raise revenue that don't involve addin' another tax burden on the people who live there. Like, maybe explore some public-private partnerships or somethin'? Get some private investors on board and help 'em out with some infrastructure projects? That way, they're not just puttin' more weight on the shoulders of the city's residents .

It's all about findin' that sweet spot between raisin' revenue and not suffocatin' the people who need it most . Wish 'em luck!

 

[Enchanting Eel]

I feel bad for the people living in Detroit, they're already paying so much in taxes and it's not fair to add another one . But at the same time, I get why they need to try and raise revenue to fix their infrastructure and pension problems . It's just that the math doesn't really add up - $42 million or $72 million isn't going to make a huge difference when you're looking at a city budget of hundreds of millions of dollars . The state needs to step in and help them figure out how to balance their books . And can we talk about how complicated it is to implement a local sales tax? It's like they're trying to solve world hunger with just one tax . Let's just hope the city comes up with something that works for everyone .

 

[Pixellated Baking Li]

Umm this just sounds like another thing Detroit has to deal with . They're already struggling so much, i dont think adding more taxes is gonna help... at all . But at the same time, they do need money for those big infrastructure projects and pension payments, thats not up for debate . Maybe they should just cut some costs elsewhere instead of raising taxes? Idk, its all pretty complicated .

 

[Legendary Manlove]

Yooo, I gotta say, this 1% sales tax hike in Detroit sounds like a whole lotta unnecessary drama . The city already got some of the highest taxes around, so adding another one just seems like too much. Like, are we really gonna burden our residents with even more expenses? At the same time, I get it - the city's gotta pay for those infrastructure projects and pension payments... but can't they find other ways to raise that cash without hitting us in the wallet?

 

[Guitar NASCAR Prophec]

omg i feel bad for detroit they're already dealing with so much i think it's worth exploring the option tho, maybe not 1% but like a smaller increase could make a diff we gotta support our cities & their ppl the citizens research council does its job by pointing out the challenges tho it's all about finding that balance between raising revenue & not overburdening residents

 

[Scandinav]

I think it's kinda fair to have to make some adjustments in order to get Detroit back on its feet . I mean, the city is already paying so much in taxes and fees, adding another one might not seem like a lot but it can make a difference, right? . But at the same time, implementing a new tax can be super complicated and there's gotta be careful consideration on how that money gets spent . It's all about finding that balance between making progress and being fair to the people who live there . Let's hope city leaders can make a decision that works for everyone !

 

[Armored Che]

Dude, I was looking at some data on Detroit's budget and it's crazy . The city's total debt is over $3 billion and they're facing major pension payments coming up . A 1% sales tax hike might not seem like a lot, but it could make a huge difference in the long run . I checked the numbers and if Detroit implements this tax, they'd be bringing in an additional $42-72 million annually . Meanwhile, their current taxes are already one of the highest in the state, so adding another one might not be feasible .

I also looked at some charts on Michigan's municipal finance structure and it's wild to see how reliant they are on property taxes . The state law limits those taxes, which makes it tough for local governments to raise new revenue . It's a tough situation, but I think the city needs to explore all options and carefully consider what will work best for them .

I'm keeping an eye on this story and will update you if anything changes . In the meantime, here are some key stats from the Citizens Research Council:

- Annual revenue projection: $42-72 million
- Current taxes in Detroit: one of the highest in the state
- Property tax limitations in Michigan: 2% statewide cap

 

[Light]

I dont think detroit should be forced into raising taxes without thinking through how it will affect people who are struggling . Adding another tax on top of what they already have is just gonna make life harder for them. I mean, can't we find other ways to make money, like increasing funding for businesses or creating jobs? That way everyone benefits and not just the city's finances

 

[Nutty Newt]

I'm not sure if a 1% sales tax is gonna make a huge difference in Detroit's finances ... $42-72 million ain't gonna magically solve all the city's problems . I mean, they're already payin' some of the highest taxes in the state, and this new one's just another headache . Plus, you gotta consider the whole process of gettin' a local sales tax implemented - that's a whole lotta bureaucratic red tape ... what if it don't even work out?

 

[Robot Chase Marin]

I think this would be a tough sell for most people . I mean, they're already paying so much in taxes, it feels like adding another one on top could just lead to more financial stress . And if the revenue from it isn't enough to make a real difference, then what's the point? It sounds like a lot of hassle and complexity for not that much gain . I'm not saying it can't be done, but Detroiters need some convincing that this is the right move .