Michigan’s cannabis tax revenues jump tenfold in 2021

Fix the Roads Michigan

Fix the Roads MichiganGrownIn Magazine shares that the perennial campaign issue of fixing Michigan’s roads got easier thanks to legal cannabis because 2021 brought a nearly tenfold increase in Michigan’s cannabis tax revenue for Michigan over the previous year:

In 2021, the sales tax collected, which includes both the 6% charged for adult use and medical, totaled $115,462,347. Meanwhile, the adult-use’s additional 10% excise tax added up to $131,195,173 that same year. Bringing 2021’s total cannabis revenues to $246,657,520.

Legal cannabis operators in Michigan are required to pay two main taxes: a 6% sales tax for both medical and adult-use marijuana and a 10% excise tax for adult-use cannabis retailers and microbusinesses. In addition, municipalities hosting cannabis businesses can charge up to $5,000 in annual fees.

…The largest chunk – the 10% excise tax on adult-use marijuana – must be divided according to state law. Fifteen percent, or $19,679,275, went to municipalities where a marijuana retailer or microbusiness is located, allocated in proportion to the number of retailers and microbusinesses in the municipality. Another 15% went to counties with retailers and microbusinesses, as well. Thirty-five percent or $45,918,310 went to a school aid fund for K-12 education, and another 35% went to the Michigan transportation fund to be used to repair and maintain infrastructure.

In March 2021, the first adult-use marijuana payments were distributed to the state’s municipalities and counties, according to a press release. At the time, the Treasury doled out $10 million to more than 100 municipalities and counties, which included 38 cities, seven villages, 21 townships and 38 counties at the time. The largest chunk – $616,029 – went to Washtenaw County, which has 22 licenses.

Lots more in GrownIn.

photo for artwork courtesy TireZoo on Flickr