Detroit Evening Report: Researchers investigate the effects of a potential sales tax in Detroit

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.