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
Government Drones in Your Life – Yes, They Made up a Reason
Long Lake Township v. Maxon The Costs Outweigh Benefits in Exclusionary Rule Application and the Slippery Slope of Fourth Amendment ProtectionsThe recent decision by the Michigan Supreme Court in Long Lake Township v. Maxon represents a significant shift in the...
Oakland County Sheriff’s deputy fatally shot in ‘ambush’ while following stolen car
Oakland County Sheriff's deputy fatally shot in 'ambush' while following stolen carA deputy investigating a stolen car was shot to death Saturday night in Detroit in what Oakland County Sheriff Michael Bouchard called an ambush. Oakland County Sheriff's Deputy Bradley...
This drug will eat your flesh turn your skin green and it’s in Michigan
This illicit drug will eat your flesh, turn your skin green, scaly and it's in MichiganWe did not post any pictures depicting the results of abuse because it is horrifying. If you must see - Google for images of Krokodil.Authorities are warning to be cautious of...
$700 Million Settlement Against Johnson and Johnson – What’s Your Cut?
Attorney General Nessel Reaches $700 Million Settlement Against Johnson and JohnsonYour mom and your dad have been covering you with Johnson and Johnson powder since you were a baby. There was always a cloud of powder in the air as they slapped it on you. It got all...
More Posts
Michigan DUI Laws and Consequences – Second Offense
Michigan DUI Laws and Consequences – Second Offense Operating Under the Influence (OUI) is a serious offense in Michigan. If someone is caught driving under the influence of alcohol or drugs, they can face severe penalties. When it comes to a second offense, the...
Federal Ban on Owning Firearms by Cannabis Consumers is Unconstitutional Court Says
Federal charges against a non-violent, cannabis-using gun owner were unconstitutional.A federal appeals court panel upheld a lower court's ruling on Wednesday, declaring that federal charges against a non-violent, cannabis-using gun owner were unconstitutional. “The...
AG Nessel joined 21 attorneys general to regulate the sale of firearms
Extreme Risk Protection Order to prevent individuals from possessing or owning a firearm for eight years following their conviction. That legislation was signed into law by Governor Gretchen Whitmer in November of 2023.Michigan Attorney General Dana Nessel has joined...
Michigan DUI Laws and Consequences – First Offense
First Offense DUI in Michigan: Laws and ConsequencesFacing a first offense DUI in Michigan can be daunting as the implications are significant and the legal landscape is complex. Understanding the laws surrounding Operating While Intoxicated is essential, as these...
Court Ruling – No bonus for growing weed
COURT RULING – SORRY NO BONUS FOR GROWING CANNABISA marijuana farm worker is unable to succeed in his breach-of-contract lawsuit regarding a $100,000 bonus he claims to be owed for producing a healthy harvest of 1400 pounds of dry cannabis crop as the contract is...
Cannabis workers claimed employer violated labor laws
Allegedly had to put on company-issued personal protective equipment (“PPE”) (such as masks, hair nets, arm sleeves, gloves, scrubs, and protective shoes) before clocking in Close to 1.2 milion settlement for 134 cannabis workers alleging wage violations under federal...
The MSP is Concerned About Your Privacy (Vehicle Information)
Is the Michigan State Police really concerned about your Driver License and Motor Vehicle Information privacy?Here's what they say on their websiteThe Michigan State Police (MSP) is committed to protecting the privacy of your potentially personally identifiable data...
The MSP is Concerned About Your Privacy (Biometric Information)
Is the Michigan State Police really concerned about your DNA / biometric privacy?Here's what they say on their websiteThe Michigan State Police (MSP) is committed to protecting the privacy of your potentially personally identifiable data (PPID) in a strong and...
The MSP and Your Privacy (Criminal History)
Is the Michigan State Police really concerned about your criminal history privacy?Here's what they say on their websiteThe Michigan State Police (MSP) is committed to protecting the privacy of your potentially personally identifiable data (PPID) in a strong and...
The 6th Amendment – Do You Know What It Is?
The 6th Amendment: is it still a thing?The 6th Amendment to the United States Constitution is a crucial pillar of the Bill of Rights, designed to ensure fair and just legal proceedings for individuals accused of crimes. Ratified on December 15, 1791, this amendment...
