A sales tax of one percent in Detroit could generate $72 million a year in revenue for the city. That’s according to a report released Wednesday by the Citizens Research Council (CRC). But the juice may not be worth the squeeze. 

CRC officials say that estimated $72 million revenue is only about 5% of Detroit’s general budget for 2026. Creating the tax requires changes to the state constitution, an ordinance from the city council and voter approval. 

Researcher Madhu Anderson says implementing the tax could create other challenges for the city. 

“It encourages what we call tax avoidance, which is looking for areas where taxes may be lower to buy the same product It also encourages more competition for businesses. They may choose to not locate in a city because of the higher taxes, meaning residents may not purchase things there.” 

Anderson says there are alternatives the city could look at for increasing revenue, such as an entertainment tax. 

Detroit Mayor Mary Sheffield is looking for suggestions from residents about what issues in the city she should be focusing on. The mayor’s transition team, Rise Higher Detroit, has released a survey on their website asking for input on things like taxes, services, community programs and more. Volunteers will also be going door to door in neighborhoods.

For more information or to complete the survey visit risehigherdetroit.com/survey. 

 Additional headlines for Thursday, Jan. 15, 2026

Scholarship for construction, trades

The National Association of Women in Construction Detroit Chapter is offering a $2500 scholarship to Michigan students and apprentices pursuing careers in construction and skilled trades. 

The chapter is holding a free, in-person workshop on Jan. 24 at the Northwest Activities Center. Scholarships can be used for tuition, training, and tools.

Applications are due Feb. 28. For more information, visit the link in today’s DER post at wdet.org/der. (nawic.org/nfsf-scholarships) 

 Donation drive for Interim House

The Church of Christ Care Community is organizing a donation drive for Detroit residents. The church is collecting items to create welcome bags for women and children who arrive at Interim House, Michigan’s largest shelter for victims of domestic and sexual abuse.

People can donate clothing, pajamas, personal care items, formula, stuffed toys, blankets, diapers, wipes, non-perishable snacks and juice.

The drop off location is 23621 15 Mile road in Clinton Township. Donations are being collected through March.   

Listen to the latest episode of the “Detroit Evening Report” on Apple Podcasts, Spotify, NPR.org or wherever you get your podcasts.

The Great Lakes Water Authority says a new tunnel will divert excess stormwater from a sewer line along the Rouge River to an under-used wastewater treatment plant in southwest Detroit. The $87 million project is expected to take at least two years to complete. 

The agency expects the new tunnel will reduce the risk of flooding and sewage backups during heavy rains. State and federal grants are paying for the project, along with sewer rate revenue. 

Additional headlines for Tuesday, Dec. 23, 2025

Blight removal update

A voter-approved initiative that helped fund an expedited blight removal program in 2020 will end next year. Detroit Mayor Mike Duggan gave his final update on the program Monday. 

Duggan announced there are fewer than 1,000 abandoned homes left. That’s down from 47,000 in 2014. Of those remaining, 240 are scheduled to be demolished with the other 702 in the pipeline to be sold. 

Duggan says the final steps will focus on addressing contaminated soil from sites where contractors used polluted backfill. He says there is still a $15 million reserve to address backfill contaminated sites. 

Demolition begins for new DCFC field

Demolition work has begun on the old Southwest Detroit Hospital which has been abandoned since the early 90s. The site along Michigan Avenue is being cleared to make way for a new 15,000 seat soccer stadium where Detroit City Football Club will play its home games. 

AlumniFi Field, as the stadium will be known, is expected to host its first match in 2027. 

Renovations to prepare Little Caesars for WNBA

Detroit Downtown Development Authority has approved up to $5 million in cash toward the cost of renovations at the Little Caesars Arena for Detroit’s incoming WNBA team. 

Renovations include a new locker room, modifications of game officials’ locker rooms and visitor space. Work is expected to start in 2028. 

Detroit’s WNBA franchise will be the fifth professional team to play downtown – joining the city’s NBA, NHL, NFL and MLB teams. 

Sheffield names David Bowser as chief of staff

Detroit Mayor-Elect Mary Sheffield has named David Bowser as her Chief of Staff.

Bowser was her senior policy advisor during her campaign and is the director of her transition team. 

Bowser served as deputy director of the Housing and Revitalization Department, deputy director of the Community Health Corps and director of Human Services in the for Mayor Mike Duggan. 

Listen to the latest episode of the “Detroit Evening Report” on Apple Podcasts, Spotify, NPR.org or wherever you get your podcasts.