Michigan distributes 10 million in tax revenue to cities in the state

Michigan citizens purchased more than $341 million a week of legal recreational cannabis in fiscal 2020, and tax revenue from those sales is being distributed to local governments and services. The Michigan Treasury Department announced which will distribute nearly 10 million to more than 100 counties and state counties as part of the Michigan Cannabis Regulation and Taxation Act.

The State of Michigan is returning to municipalities, towns and counties a share of taxes corresponding to establishments licensed in their jurisdictions for cannabis for adult consumption. The distribution of the taxes collected is distributed among 38 cities, seven villages, 21 districts and 38 counties. They each began receiving payments from the Cannabis Regulatory Fund for every licensed retail store and microenterprise in their jurisdiction. For the state's 2020 fiscal year, each eligible county and county will receive approximately $28 for each licensed retail store or microenterprise.

NEWS RELEASE: Treasury: First Adult-Use Marijuana Payments Distributed to Michigan Municipalities, Counties https://t.co/5T4EadRUgw #MIGov pic.twitter.com/O4QKLEl34M

— Michigan Department of Treasury (@MiTreasury) March 4, 2021

“The revenue generated by cannabis taxes and fees is important to our local governments,” state treasurer Rachael Eubanks said in a statement. “At this extraordinary time, our team is working to deliver these payments to affected municipalities and counties. Every dollar helps now.”

During the state of Michigan's 2020 fiscal year, more than $31 million was raised through the adult cannabis consumption tax, levied at 10 percent. Combined with fees, the value amounts to 45,7 million available for distribution.

Under state law, the money will be distributed:

Nearly $10 million in disbursements to counties and counties, $11,6 million will be sent to the School Aid Fund for K-12 education, $11,6 million to the Michigan Transportation Fund and the amount of $12,5 million will cover costs initial and administrative. “The Marijuana Regulatory Agency (MRA) team has done an excellent job of effectively establishing and operating the adult use licensing program,” MRA Executive Director Andrew Brisbo said in a statement. “Injecting over $28 per facility into the budgets of various local governments across the state is very impactful and shows how strong and successful the sector is becoming.”

In two years, cannabis in Michigan has gone from being an illegal substance to being considered an “essential business” during the COVID-19 pandemic.