Cannabis Tax Payments Being Distributed in Michigan

Adult-Use Marijuana Tax Payments Being Distributed In Michigan

Here’s what they say…

Treasury: Adult-Use Marijuana Payments Being Distributed to Michigan Municipalities and Counties; More Than $59.5 Million Going to 224 Municipalities and Counties.

Sales of “legal” marijuana in Michigan contributed $266.2 million in tax revenue to the government during the most recent fiscal year, according to a new report from the legislature’s nonpartisan House Fiscal Agency.

That’s more than the state made from the sale of beer, wine and liquor combined. 

February 28, 2023

The Michigan Department of Treasury today announced that more than $59.5 million is being distributed among 224 municipalities and counties as a part of the Michigan Regulation and Taxation of Marijuana Act.

Over the next few days, 81 cities, 26 villages, 53 townships and 64 counties will receive payments from the Marihuana Regulation Fund. For the state of Michigan’s 2022 fiscal year, this means each eligible municipality and county will receive more than $51,800 for every licensed retail store and microbusiness located within its jurisdiction.

“Municipalities and counties will begin seeing these payments appear in their banking accounts,” State Treasurer Rachael Eubanks said. “Through a partnership, the dollars received from the adult-use marijuana taxes and fees are distributed to our participating communities.”

Revenue was collected from 574 licensees among the state’s cities, villages and townships during the 2022 fiscal year. Some of these municipalities host more than one licensed retail store and microbusiness.

For the 2022 state fiscal year, there was $198.4 million available for distribution from the Marihuana Regulation Fund.

State law outlines how much is distributed from the Marihuana Regulation Fund.

Aside from the more than $59.5 million in disbursements 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.

In total, more than $1.8 billion in adult-use marijuana sales was reported for Fiscal Year 2022.

“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 CRA 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.”

Where they say the money goes…

Adult-Use (Recreational) Marijuana

Adult Use Break Downs
$226m – $59m = $167m (left over after distribution…nice haul)

Marijuana funds collected under the Michigan Regulation and Taxation of Marihuana Act (Initiated Law 1 of 2018) are distributed, upon appropriation, as follows:

• 15% to municipalities in which a marijuana retail store or a marijuana microbusiness is located, allocated in proportion to the number of marijuana retail stores and marijuana microbusinesses within the municipality.
• 15% to counties in which a marijuana retail store or a marijuana microbusiness is located, allocated in proportion to the number of marijuana retail stores and marijuana microbusinesses within the county.
• 35% to the School Aid Fund to be used for K-12 education.
• 35% to the Michigan Transportation Fund to be used for the repair and maintenance of roads and bridges.

Links

• FY 2022 Adult Use Marijuana Payments 2-23-23 per municipality (PDF)
• Adult-Use (Recreational) Marijuana

MEDICAL Marijuana Break Downs

• FY 2022 Medical Marijuana Payments 2-28-23
• FY 2022 Medical Marijuana Distribution (Fine Revenue) – updated 9/15/23

Public Acts

• Section 14 of the Michigan Regulation and Taxation of Marihuana Act (Initiated Law 1 of 2018)