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Michigan Distributes Over $87 Million in Adult-Use Marijuana Payments to Local Governments



The Michigan Department of Treasury recently announced the distribution of more than $87 million among 269 municipalities and counties in the state, marking a significant step in the implementation of the Michigan Regulation and Taxation of Marijuana Act. This move follows the state's commitment to sharing the benefits of the adult-use marijuana industry with local communities.

In the coming days, a total of 99 cities, 30 villages, 69 townships, and 71 counties are set to receive payments from the Marihuana Regulation Fund. These funds, generated during the state's 2023 fiscal year, equate to more than $59,000 for each licensed retail store and microbusiness within the jurisdiction of eligible municipalities and counties.

State Treasurer Rachael Eubanks emphasized the collaborative effort between the state and local governments in ensuring the equitable distribution of adult-use marijuana tax revenues. “This week, many Michigan municipalities and counties will begin seeing their share of adult-use marijuana payments appear in their banking accounts,” Eubanks noted. “Through a partnership, the dollars received from the adult-use marijuana taxes and fees are distributed to our participating communities. These dollars may be spent how our local units deem fit to their needs.”

The revenue collected stems from 737 licensees situated across Michigan's cities, villages, and townships during the 2023 fiscal year. Notably, some municipalities host more than one licensed retail store and microbusiness, contributing to the robust financial pool available for distribution from the Marihuana Regulation Fund, which amounted to over $290.3 million for the 2023 state fiscal year.

State law plays a pivotal role in guiding the distribution of funds from the Marihuana Regulation Fund. In addition to the $87 million allocated to municipalities and counties, $101.6 million has been earmarked for the School Aid Fund to support K-12 education, while another $101.6 million is designated for the Michigan Transportation Fund.

“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,” highlighted Brian Hanna, Executive Director of the Cannabis Regulatory Agency (CRA). “The CRA is committed to doing our part in supporting our licensees so that they can continue to grow the local economy throughout the state with good-paying jobs and increased revenues for local government budgets.”

As Michigan embraces the economic opportunities presented by the legal cannabis industry, the strategic allocation of funds to education, transportation, and local communities underscores the state's commitment to fostering a thriving and sustainable marijuana marketplace. The collaboration between state agencies and local governments exemplifies a model that other jurisdictions may look to as they navigate the complexities of cannabis legalization.

The full report can be accessed here.