Michigan Officials Are Sending Nearly $100 Million In Marijuana Tax Revenue To Cities And Tribes Across The State After Record-Breaking Cannabis Sales In 2024

Michigan officers have introduced that they’re disbursing almost $100 million in marijuana tax income to over 300 cities and tribes throughout the state because of the state’s adult-use legalization legislation. That’s a part of the general $331 million in tax {dollars} Michigan is distributing throughout numerous initiatives.

The tax {dollars} will assist numerous native infrastructure, schooling and different wanted providers, the state Treasury Division says.

“Beginning this week, my crew will start to distribute adult-use marijuana funds to Michigan’s native models of presidency and tribal companions,” State Treasurer Rachael Eubanks stated in a press launch on Friday.

“The {dollars} acquired from the adult-use marijuana taxes and charges go towards faculties, roads and again into Michigan’s neighborhoods,” she stated. “Native entities and tribes can spend these {dollars} nonetheless they deem match for his or her wants.”

For the primary time, following an modification to the state’s hashish legislation, $931,000 is being granted to 4 tribal governments.

Additionally, along with the almost $100 million that’s being distributed to localities, the state has despatched $116 million to the Faculty Assist Fund for Okay-12 schooling and $116 million to the Michigan Transportation Fund.

Grownup-Use Marijuana Funds Being Distributed to Michigan Municipalities, Counties and Tribes; Practically $100 Million Going to 302 Native Entities and Tribes Throughout State of Michigan: https://t.co/UDwo8VDt3g. #MiGov #Cannabis #Marijuana @MItownships @MIcounties #LocalGov pic.twitter.com/XQwXq7RmfV

— Michigan Division of Treasury (@MiTreasury) February 21, 2025

“Municipalities, counties, and tribes actually profit from their native hashish companies in some ways, together with good-paying jobs, group involvement, and elevated revenues for essential priorities of their price range,” Hashish Regulatory Company (CRA) Govt Director Brian Hanna said. “This portion of the excise tax income makes a direct affect within the communities the place our licensees work and dwell.”

The tax income supporting these disbursements is the results of a report 12 months for marijuana gross sales in Michigan, with over $10 billion in adult-use hashish merchandise bought in 2024.

Regardless of dropping costs and no less than some slowdown in gross sales by greenback quantity, Michigan however additionally set a number of month-to-month gross sales data in 2024, hitting almost $289 million in March and greater than $295 million in August.

This newest income distributions, accordingly, exceeded that of final 12 months’s, when officers introduced they’d granted greater than $290 million in marijuana tax {dollars} to localities, public faculties and a transportation fund. A complete of 269 municipalities acquired $87 million, whereas schooling and transportation efforts received $101.6 million.

And even that represented a considerable improve in hashish tax-funded disbursements which might be required beneath the state’s adult-use legalization legislation. In 2022, Michigan distributed about $150 million whole to the three funding buckets, for instance.

State officers stated in late 2023 that tax income from authorized marijuana grew by 49 p.c in comparison with 2022, surpassing the quantity of income constructed from alcohol gross sales. Marijuana gross sales incur a ten p.c excise tax—among the many lowest charges within the nation—in addition to a 6 p.c state gross sales tax.

Additionally, late 2023, CRA introduced the launch of a brand new social fairness grant program that may award $1 million to eligible marijuana companies for schooling, enterprise wants or group reinvestment.

Elsewhere in Michigan’s authorized hashish panorama, a change accredited by the state Civil Service Fee took impact in October 2023 to finish pre-employment marijuana testing for many authorities staff. The shift additionally gave individuals who’ve already been penalized over optimistic THC exams a chance to have the sanction retroactively rescinded.

That very same month, Michigan Gov. Gretchen Whitmer (D) signed a pair of payments into legislation to enable state-licensed marijuana companies to conduct commerce with tribal hashish entities. Each took impact instantly.

In the meantime, the Michigan Chamber of Commerce stated in January 2024 {that a} rash of latest break-ins at authorized marijuana retailers within the state underscores the necessity for federal hashish banking reform, which the group says would cut back the dangers of theft and fraud that stem from the trade’s present reliance on money.

Final 12 months, lawmakers additionally took steps to align the state’s medical marijuana laws with the adult-use market.