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
Bloomfield Hills Doctor Convicted of $6M Medicare Fraud Scheme
JUSTICE.GOVFor Immediate Release Office of Public AffairsA federal jury convicted a Michigan doctor today for causing the submission of over $6.3 million in fraudulent claims to Medicare for medically unnecessary orthotic braces ordered through a telemarketing...
School district says marijuana-related incidents on the rise
School district reports an increase in marijuana-related incidents at schools and calls on leaders to take action.The Detroit Public Schools Community District has observed a substantial rise in the use of marijuana edibles and vape pens within schools. In light of...
Whitmer Signs Bills for Health Services and Criminal Justice
LANSING, Mich. – Today, Governor Gretchen Whitmer signed legislation that aims to establish a licensure framework for dietitian nutritionists. The governor also signed legislation that delivers ongoing funding for trial courts across the state, reducing costs for...
What is corruption? U.S. Supreme Court will hear arguments
What is corruption? U.S. Supreme Court will hear arguments that could impact bribery cases in IllinoisThe high court is reviewing a law that’s popular among federal prosecutors — including those pursuing former Illinois House Speaker Michael J. Madigan.A cash-strapped...
More Posts
The US Supreme Court and Federal Gun Law Cases
The US Supreme Court and Federal Gun Law CasesChallenges to Federal Gun Laws the right of the people to keep and bear Arms, shall not be infringed Updated July 8, 2024 Ratified in 1791, the Second Amendment provides, “A well regulated Militia, being necessary to the...
Do Passengers in a Vehicle have 4th Amendment Rights?
Do Passengers have 4th Amendment Rights?Michigan Supreme Court Limits Police Ability to Search Passenger Property in CarsBackground Mead was a passenger in a car and had just met the driver, who offered him a ride. When the police stopped the vehicle and ordered both...
Do Students Have 4th Amendment Rights in Schools
Students and 4th Amendment RightsStudents are entitled to a right to be safe from unreasonable searches and seizures even within school premises, as ruled by the Supreme Court of the United States. However, these rights are somewhat limited for students, allowing...
Forfeiture Law: SCOTUS and Sixth Circuit Issue Landmark Rulings
Forfeiture Law in Focus: SCOTUS and Sixth Circuit Issue Landmark RulingsThe landscape of forfeiture law has been significantly shaped by recent decisions from the U.S. Supreme Court and the Sixth Circuit Court of Appeals. These rulings, in the cases of United States v...
Facial Recognition and Wrongful Arrests
Facial RecognitionHow Technology Can Lead to Mistaken-Identity Arrests Facial recognition technology has become increasingly prevalent in law enforcement, but its use raises critical questions about civil liberties and accuracy. One landmark case sheds light on the...
People v. Chandler Case: Protecting Fourth Amendment Rights
Court of Appeals of Michigan PEOPLE of the State of Michigan, Plaintiff-Appellee, v. Javarian CHANDLER, Defendant-Appellant. No. 368736 Decided: June 27, 2024Before: Borrello, P.J., and Swartzle and Young, JJ. Introduction In the People v. Chandler case, the Michigan...
MI Lawyer Weekly – Michigan’s Go To Lawyers for Cannabis Law
Please join us in congratulating our inaugural Michigan’s Go To Lawyer for cannabis law. Michael Komorn, Komorn Law, Farmington HillsMichigan Lawyers Weekly is pleased to announce the inaugural “Go To Lawyers” for cannabis law. Now in its fifth year, the “Go To...
Chinese-funded marijuana farms springing up across the U.S.
Inside the Chinese-funded and staffed marijuana farms springing up across the U.S.During a farm inspection, New Mexico state special agents discovered an excessive number of cannabis plants in violation of state laws. Subsequent visits revealed dozens of underfed and...
AGs – Ex DEA Leaders for Push Public Hearing On Marijuana Rescheduling
State AGs And Former DEA Leaders Push Agency To Hold Public Hearing On Marijuana Rescheduling ProposalIn a filing with the federal government ahead of a key deadline this week, a group of former Drug Enforcement Administration (DEA) leaders is asking the agency to...
I got a DUI while driving my dad’s boat – Will they take it?
I was out driving my dad's boat on the lake and I got caught drinking. Can they take the boat away from my dad who was not with me?Happy Father's Day - DadNo, in most cases, they likely won't take your dad's boat away for you getting a DUI while driving it. They Could...
