An 8.1 percent tax is levied by the state of Michigan on the adjusted gross receipts of the state’s licensed casino gaming establishments.[lxx] The entirety of this state tax is credited to the state school aid fund. In fiscal 2006, approximately $102 million was credited to the school aid fund from this tax.
[lxx] The state levies the 8.1 percent tax because the city in which such operations have been established, i.e., Detroit, levies a 9.9 percent tax; see MCL § 432.212(1). If Detroit were unable or did not wish to levy the 9.9 percent tax, the state would levy the full 18 percent on gross receipts of casino gaming operations, with 45 percent of the tax going to the SAF: see MCL § 432.212(3)(b). The city may levy an additional tax, but the revenue raised would not be received by the SAF.