The Michigan Department of Treasury announced Thursday the allocation of over $290 million in cannabis tax revenue, making a significant contribution to local governments, education and transportation infrastructure. Over $87 million of these funds are being distributed to 269 municipalities and counties across the state, under the Michigan Regulation and Taxation of Marijuana Act.
Local Governments Reap Cannabis Tax Benefits
This financial boon will benefit 99 cities, 30 villages, 69 townships and 71 counties, with each eligible municipality and county receiving more than $59,000 for every licensed cannabis retail store and microbusiness within their jurisdiction. The payments, drawn from the Marihuana Regulation Fund, are part of the state’s 2023 fiscal year earnings from 737 licensees.
State Treasurer Rachael Eubanks stressed the flexibility of these funds, stating, “These dollars may be spent how our local units deem fit to their needs,” highlighting the autonomy given to local governments in utilizing the tax revenue.
Funding Education And Infrastructure
The allocation plan also extends to state-level public investment. According to the Treasury’s breakdown, $101.6 million goes to the School Aid Fund, which supports K-12 education with an equal amount to the Michigan Transportation Fund, dedicated to the repair and maintenance of roads and bridges. This distribution reflects the state’s broader strategy to leverage cannabis tax revenue to drive economic development and contribute to social well-being.
Cannabis Industry’s Role In Economic Growth
Brian Hanna, executive director of the Cannabis Regulatory Agency (CRA), lauded the initiative. “The tax funding for municipalities and counties that comes from the marijuana excise tax is a very important benefit of the legal cannabis industry in Michigan.” Hanna’s statement underscores the CRA’s role in fostering an environment where the cannabis industry can thrive, thereby augmenting local economies and contributing to public coffers.
In 2023, Michigan’s cannabis industry hit a landmark by generating $3.06 billion in sales through licensed dispensaries. This strategic tax revenue allocation aids local governments and bolsters the state’s education and infrastructure, underscoring the comprehensive benefits of regulated adult-use cannabis.
