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
MEDICAL Marijuana Break Downs
For more information about adult-use marijuana tax distributions – including a breakdown of how much municipalities and counties received – go to Michigan.gov/RevenueSharing. To learn more about Michigan’s adult-use marijuana industry, go to Michigan.gov/cra.
Source: https://www.michigan.gov/treasury/news/2023/02/28/adult-use-marijuana-payments-being–distributed-to-michigan-municipalities-and-counties
Have your rights been violated?
Have your driving priviledges been revoked?
Has your professional license been suspended?
Second Amendment rights taken away?
Have you been charged with a crime?
Call our office to see if we can help
Komorn Law 248-357-2550
More is always better for the Government
Legislative Update 12-9-22
Liquor tax funding change means $25 million boost to counties
A two-bill package designed to extend the capture of liquor tax revenue that counties use for substance abuse programs passed during the last days of the legislative session this week and will soon mean a $25 million boost to counties.
Senate Bills 1222-23, by Sen Wayne Schmidt (R-Grand Traverse), amend the State Convention Facilities Authority Act to extend the sunset on the capture of liquor tax revenue for improvements to the convention facility in Detroit and therefore extend the sunset on the collection of liquor tax revenue for counties.
The issues were tied together when the act was created. Under current law, the collection and allocation of the liquor tax revenue expires once the bonds for the convention facility are paid off. Due to recent increases in liquor tax revenue, those bonds are scheduled to be paid off 13 years early, which would eliminate the future collection of revenue and deplete the allocation to counties. This two-bill package does not extend the 2039 deadline for the bonds to be paid off, but it does allow the facility authority to issue additional bonds for improvements.
MAC has been working with representatives from the authority to address our need to have counties’ annual allocation reflective of the collection of the liquor tax revenue. Current law states counties receive an increase in their allocation based on a percentage above the previous year’s allocation, not on a percentage of the total tax collected. The excess tax collected is instead allocated to the reduction of the bond debt of the authority. (Again, due to the increase in liquor tax revenue, those bonds are scheduled to be paid off early.)
By allowing the authority to issue additional debt for improvements, the bills do something significant for counties. Beginning in 2023, the baseline allocation in liquor tax dollars for counties will increase by approximately 48 percent — or $25 million. (See county-by-county estimates.) The annual increase will remain the same as current law of 1 percent additional each year, but the baseline will be reset every three years to reflect the increase in revenue from the liquor tax.
Also, current law states 50 percent of the liquor tax revenue received by counties must be allocated to substance abuse programs. SBs 1222-23 will change that requirement to 40 percent (though no less than the amount allocated in FY22). In short, this will be a significant increase in funds toward substance abuse programs and an increase in the amount counties can allocate to their general funds.
The bills are now headed to the governor for her expected signature.
For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.
Related Articles
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.
More Posts
Drug felonies without credible proof? — Allegations of politicking in state police crime labs
GRAND RAPIDS, Mich. – First on FOX 17, we broke serious allegations that state police crime labs are being told to falsely report marijuana test results. This is resulting in misleading lab reports that an attorney claims creates felonies without real proof. ...
Attorney: Crime labs ‘falsified’ marijuana reports
A Southfield lawyer alleges the Michigan State Police crime labs have “falsified lab reports on marijuana statewide” and he’s asking a judge to dismisses charges lodged against a client. Michael Komorn, who also represents defendants in Livingston County, said...
Hearing in alleged false crime lab marijuana reporting dropped this week
OTTAWA COUNTY, Mich. – The evidentiary hearing originally set for Nov. 5 has been dropped in the case involving a medical marijuana patient charged with a disputed felony for synthetic THC, the psychoactive ingredient in marijuana. The Ottawa County Assistant...
“A non-stop political game:” Former MSP Forensic Science director on false marijuana reporting …
DEWITT, Mich. – A former director of Michigan State Police Forensic Science addressed the serious allegations FOX 17 uncovered, which accuse the Attorney General’s office and state prosecutors of influencing state police crime labs to falsely report marijuana;...
Michigan’s medical marijuana law circumvented by crime labs’ THC reports, attorney charges
Posted on MLive 10/30/15 OTTAWA COUNTY, MI – An attorney claims prosecutors pressured state police crime labs to change the way THC, the active ingredient in marijuana, is reported in an effort to circumvent Michigan's medical marijuana law. Michael...
Medical-Marijuana Patient Alleges Prosecutors Swayed Crime Lab Drug Tests
Fri, 10/30/2015 - 4:11pm A Michigan medical-marijuana patient claims in court papers that state police crime labs are bending to pressure from prosecutors in analyzing marijuana samples, leading to harsher punishments. Maxwell Lorincz, 35, was originally...
Allegations: MSP falsely reporting marijuana, targeting card-carrying patients
SPRING LAKE, Mich. – The defense representing a Spring Lake father facing a felony marijuana charge is accusing Michigan State Police Forensic Science Division crime labs of misreporting marijuana intentionally. It’s an allegation with statewide implications. ...
When Being Hated…Is Revered
By Attorney Michael Komorn " Lieutenant, this lawyer is a pain in the ass, I can't stand him, I really hate him" This was my client's observation of the prosecutor after exiting the conference room she and I had been in for over an hour discussing and...
Lawyer slams decision to deny cannabis to autistic kids
"Allowing medical marijuana for those with autism was supposed to be the clinical trial," Komorn said. "Instead, we're going to have criminal trials." Lawyer slams decision to deny cannabis to autistic kids The Detroit News Article August 28, 2015 - Lansing —...
Father fighting to use medical marijuana concentrates
April 23, 2015 - In Western Michigan yet another Michigan Medical Marijuana patient is fighting for his freedom in a system of confusing laws. He is also fighting for the right to see his child all while the State of Michigan possibly destroys his family and...
