Michigan Recreational Marijuana Sales Increased 29% In January

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Michigan released its latest monthly marijuana industry statistical report for the month of January.

As expected, recreational marijuana sales continued to grow at a brisk pace in January, the latest monthly sales figures show.

Recreational sales hit $9.8 million, compared to nearly $7 million in December, the first full month of recreational sales, which began Dec. 1.

The state for January will collect about $1.63 million in recreational marijuana tax revenue, $980,000 from the 10% excise tax and $646,800 in sales tax.

The first $20 million for the first two years after recreational marijuana sales begin is slated to be spent on research for marijuana use in health care. The breakdown of the remainder is: 15% to cities, townships or villages that allow recreational business, proportioned based on the number of micro-businesses and retailers; 15% to counties, proportioned based on the number of micro-businesses and retailers; 35% to the School Aid Fund for K-12 education and 35% to the Michigan Transportation Fund for road and bridge repair.

Medical marijuana sales increased slightly, from $24.9 million in December to $25.2 million in January.

The average cost for an ounce of retail recreational marijuana dipped a bit to $512 per ounce in January from $516 per ounce in December. The average cost for an ounce of medical marijuana increased from $267 per ounce to $276 per ounce.

The Marijuana Regulatory Agency approved 24 new recreational marijuana business licenses, fewer than the 32 approved in December, and approved 53 new medical marijuana business licenses compared to 29 medical marijuana business licensed in December.

Three medical and 19 recreational applications were denied last month.

While recreational marijuana sales experienced a nearly 30% increase in January, the cost to administer the licensing and registration programs increased nearly 20 percent.

The state spent $766,910 on medical marijuana licensing, up from $655,109 in December; $556,892 on recreational marijuana licensing, up from $444,720 in December; and $412,419 on the patient-caregiver registry program, up from $280,389 in December.

The total cost for Marijuana Regulatory Agency programs increased $356,000 to $1.74 million. Nearly $1.16 paid salaries and benefits for the agency’s nearly 130 employees.

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