 Like most states that legalize adult-use cannabis, Michigan gave municipalities the choice to participate in allowing cannabis businesses in their jurisdiction, or not.
Those who opted in are seeing a financial windfall from the tax revenue. The state’s Regulation and Taxation of Marihuana Act (MRTM) stipulated a portion of cannabis tax revenue received will be distributed to the cities which opted in to the program. The Cannabis Business Times reported that cities and counties which did will each be getting a share in $42.2 million which was collected from last year’s adult-use cannabis sales. There were a total of 160 municipalities that participated. They will receive $56,453.44 for each and every retail store or microbusiness licensed within their jurisdiction. Many municipalities had combined jurisdictions. For example, the city of Ann Arbor has 25 licensees, so that city will receive $1.4 million. Then the County where Ann Arbor is located will also receive credit for those 25 licensees, plus credit for the other licensees located elsewhere in Washtenaw County, so they will receive $1.8 million. As cannabis sales grew from 2020 to 2021, the amount each municipality received was about double from the year before. Besides these municipalities getting a portion of the tax revenue, some other programs that benefited greatly were school and transportation funds, which received just under $50 million each. Michigan Licensing and Regulatory Affairs Director Andrew Brisbo said, “It’s rewarding to see that the agency’s balanced regulatory approach is effectively protecting consumers while still allowing Michigan businesses to grow and thrive.” Given these numbers, the places which choose not to allow cannabis businesses must certainly be considering changing their minds. Comments are closed.
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