Michigan to Send $140 Million in Marijuana Tax Revenue to Taxpayers | State
(The Center Square) — More than $1.1 billion worth of legal marijuana was sold in Michigan in fiscal year 2021, and now more than $140 million in tax revenue will be returned to taxpayers.
Of this amount, $42.2 million will fund 163 municipalities and counties, $49.3 million will go to the School Aid Fund and $49.3 million will go to the Michigan Transportation Fund.
Next week, 53 counties, 62 cities, 33 townships and 15 villages will receive payments from the Marijuana Regulatory Fund. A list of local governments that will receive revenue is here. For Michigan’s 2021 fiscal year, each eligible municipality and county will receive more than $56,400 for each licensed retail store and microbusiness in its jurisdiction.
“The Michigan Treasury Department will distribute these dollars as soon as possible to eligible local units of government,” State Treasurer Rachael Eubanks said in a statement. “The doubling of payment amounts this year will have a greater impact on local government budgets.”
The state collected revenue from 374 licensees among cities, towns, and townships across the state in fiscal year 2021. Some local governments house more than one licensed retail and micro-business store.
For fiscal year 2021, more than $111 million was collected through the 10% excise tax on adult-use marijuana. A total of $172 million was available for distribution from the fund, after taking into account income, fees and deferrals, Treasury spokesman Ron Leix told The Center Square in an email.
Marijuana Regulatory Agency Executive Director Andrew Brisbo welcomed the news.
“It is gratifying to see the agency’s balanced regulatory approach effectively protect consumers while allowing Michigan businesses to grow and prosper,” Brisbo said in a statement. “The funding provided directly to local governments – and the thousands of jobs created across the state – show that Michigan is leading the way in the cannabis industry.”
State Law manages revenues are distributed as follows:
- 15% to municipalities in which there is a marijuana retail store or marijuana microenterprise, allocated based on the number of marijuana retail stores and marijuana microenterprises in the municipality.
- 15% to counties with a marijuana retail store or marijuana microbusiness, allocated to the number of marijuana retail stores and marijuana microbusinesses countywide.
- 35% to the School Aid Fund to be used for K-12 education.
- 35% to the Michigan Transportation Fund to be used for the repair and maintenance of roads and bridges.