by Scott McClallen
More than $1.1 billion of legal marijuana has been sold in Michigan in fiscal year 2021, and now, more than $140 million of tax revenue will kick back to taxpayers.
Of that amount, $42.2 million will fund 163 municipalities and counties, $49.3 million will flow to School Aid Fund, and $49.3 million will go to the Michigan Transportation Fund.
Next week, 53 counties, 62 cities, 33 townships, and 15 villages will receive payments from the Marijuana Regulation Fund. A list of local governments that will receive revenue is here. For Michigan’s 2021 fiscal year, each eligible municipality and county will receive more than $56,400 for every licensed retail store and microbusiness in its jurisdiction.
“The Michigan Department of Treasury will distribute these dollars as soon as practical to eligible local units of government,” State Treasurer Rachael Eubanks said in a statement. “The doubling of this year’s payment amounts will have a larger impact on local government budgets.”
The state collected revenue from 374 licensees among the state’s cities, villages and townships in the 2021 fiscal year. Some local governments host more than one licensed retail store and microbusiness.
For the 2021 fiscal year, more than $111 million was collected from the 10% adult-use marijuana excise tax. In total, $172 million was available for distribution from the fund, after accounting for revenue, fees and carryovers, Treasury Spokesman Ron Leix told The Center Square in an email.
Marijuana Regulatory Agency Executive Director Andrew Brisbo welcomed the news.
“It’s rewarding to see that the agency’s balanced regulatory approach is effectively protecting consumers while still allowing Michigan businesses to grow and thrive,” Brisbo said in a statement. “The funding provided directly to local governments – and the thousands of jobs created across the state – show that Michigan is leading the way in the cannabis industry.”
State law directs the revenue is split as follows:
- 15% to municipalities in which a marijuana retail store or a marijuana microbusiness is located, allocated to the number of marijuana retail stores and marijuana microbusinesses within the municipality.
- 15% to counties where a marijuana retail store or a marijuana microbusiness is located, allocated to the number of marijuana retail stores and marijuana microbusinesses countywide.
- 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.
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Scott McClallen is a staff writer covering Michigan and Minnesota for The Center Square. A graduate of Hillsdale College, his work has appeared on Forbes.com and FEE.org. Previously, he worked as a financial analyst at Pepsi.
Photo “Verde Natural Cannabis Dispensary” by My 420 Tours. CC BY-SA 4.0.
