Overview

• Mayor Mike Duggan outlined a plan to place $42 million of a $60 million surplus into a corporate income tax reserve.
• Officials project a $42 million decline in corporate income tax revenue for the current fiscal year.
• City leaders cite recent federal tax-law changes under the Big Beautiful Bill and ongoing tariffs as drivers of lower corporate net profits.
• Tariffs could reduce Detroit’s revenue by about $26 million, and manufacturing profits have fallen roughly 50% in six months, according to officials.
• The city reports other revenue streams remain stable, is pursuing a legal challenge to clarify federal impacts, and warns next year’s budget could face a $16 million gap.