State distributes $10 million in tax revenue to communities with recreational marijuana businesses

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The Michigan Department of Treasury is distributing nearly $10 million to more than 100 communities as a part of the Michigan Regulation and Taxation of Marijuana Act.

More than $341 million in adult-use marijuana sales were reported for fiscal year 2020.

This week, 38 cities, seven villages, 21 townships and 38 counties began receiving payments from the state Marihuana Regulation Fund for every licensed recreational marijuana retail store and microbusiness within its jurisdiction, according to a news release from the Michigan Marijuana Regulatory Agency. For the state's 2020 fiscal year, this means each eligible municipality and county will receive around $28,000 for every licensed retail store or microbusiness.

Washtenaw County, which has 22 dispensaries, will collect the most money at more than $616,000. Ann Arbor, home to 17 dispensaries, will get more than $476,000, according to the state.

 

More than $31 million was collected from the 10 percent adult-use marijuana excise tax in the state's fiscal 2020. Combined with fees, there was a total of $45.7 million available for distribution from the fund, the state said.

In addition to the nearly $10 million in disbursements to communities, about $11.6 million will be sent to the School Aid Fund for K-12 education and another $11.6 million to the Michigan Transportation Fund, upon appropriation. The remaining $12.5 million will be used toward startup and administrative costs, the release stated.

"The team at the Marijuana Regulatory Agency did a tremendous job getting the adult-use licensing program established and operating efficiently," MRA Executive Director Andrew Brisbo said in the release. "Infusing over $28,000 per retailer and microbusiness into local government budgets across the state is very impactful and shows how strong and successful the industry is becoming."

Fewer than 100 of the state's 1,764 communities permit adult-use marijuana sales. The city of Detroit has not yet allowed recreational dispensaries, but in January it began accepting applications for them.

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