Local governments are seeing green, thanks to Michigan’s cannabis laws. At least some of them, that is.
More than $59.5 million collected from taxes is heading to 224 Michigan municipalities and counties that have opted-in to the state’s licensed cannabis industry, according to a Tuesday announcement from the Michigan Department of Treasury.
Recipients include 81 cities, 26 villages, 53 townships, and 64 counties. According to the Michigan Department of Treasury, that comes out to more than $51,800 for every licensed cannabis dispensary and microbusiness located within each jurisdiction for the fiscal year 2022.
“Municipalities and counties will begin seeing these payments appear in their banking accounts,” State Treasurer Rachael Eubanks said in a statement. “Through a partnership, the dollars received from the adult-use marijuana taxes and fees are distributed to our participating communities.”
While a plethora of licenses have contributed to plummeting cannabis prices in Michigan, more than $1.8 billion adult-use cannabis sales were reported in Michigan in the 2022 fiscal year.
Despite the plummeting price, revenue grew. Last year, the Michigan Department of Treasury said it was disbursing $42.2 million to municipalities, raised from more than $1.1 billion in adult-use cannabis sales in the 2021 fiscal year.
For the 2022 state fiscal year, there was $198.4 million available for distribution. Along with the $59.5 million headed to municipalities and counties, $69.4 million was sent to the School Aid Fund for K-12 education, and another $69.4 million to the Michigan Transportation Fund, the Michigan Department of Treasury said.
“The team at the CRA does an amazing job and our effective regulatory approach allows our licensees to provide Michigan’s cannabis consumers the safest possible product,” said Cannabis Regulatory Agency executive director Brian Hanna. “The funding that makes its way to local governments through the excise tax collected by licensed retailers is an important benefit of the regulated cannabis industry and the CRA is committed to doing our part in supporting our law-abiding licensees.”
Under the Michigan Regulation and Taxation of Marijuana Act, which voters approved in 2018, communities must opt-in to allow adult-use cannabis businesses to operate, where anyone age 21 or older can purchase cannabis from licensed businesses.
Detroit, Michigan’s largest city, took years to opt-in after a series of social justice-minded ordinances got held up in legal wrangling.
The Motor City finally allowed licensed adult-use cannabis sales earlier this year.
More information is available from michigan.gov/revenuesharing.
