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It’s payday for communities in Michigan that have allowed recreational marijuana pharmacies to open.
The Michigan Treasury Department this week is distributing nearly $ 10 million to more than 100 parishes and counties from excise taxes generated from recreational cannabis sales in fiscal 2020. For each pharmacy, a community receives approximately $ 28,000.
The money will be distributed to 38 cities, seven villages, 21 townships and 38 counties that have recreational cannabis companies.
“The revenue from marijuana taxes and fees is important to our local governments,” Treasurer Rachael Eubanks said in a statement Thursday. “During this extraordinary time, our employees are working on bringing these payments to the communities and districts affected. Every dollar helps now. ”
The excise tax also raised around $ 11.6 million for schools and $ 11.6 million for roads. The remaining $ 12.5 million will be used to meet the state’s start-up and administrative costs to operate the adult marijuana system.
“The addition of more than $ 28,000 per retailer and micro-business to municipal budgets across the state is very powerful and shows how strong and prosperous the industry is,” said Andrew Brisbo, executive director of the state marijuana regulator.
With 22 pharmacies, Washtenaw County will raise the most money from excise taxes – more than $ 616,000. Ann Arbor with 17 pharmacies receives more than $ 476,000. Bay County will raise more than $ 420,000 for its 15 pharmacies.
Despite the appeal of new tax revenues, fewer than 100 of the state’s 1,764 municipalities allow recreational marijuana sales.
The financially troubled city of Detroit will not receive any money for 2020 because recreational pharmacies have not yet been able to open. As of January, Detroit was finally accepting applications for recreational pharmacies.
Recreational marijuana sales were more than $ 341 million for fiscal 2020, which ran from October 1, 2019 to September 30, 2020. The adult use market started on December 1, 2019.
Unlike medicinal cannabis, recreational marijuana has an excise tax of 10% and a sales tax of 6%. Excise revenue goes to local governments, schools and roads.
In 2019, the Senate Treasury forecast that recreational marijuana would generate $ 150 million in sales and excise taxes in the 2020-21 budget, which began in October. By 2022-23, the agency estimates tax revenue will reach $ 262 million.
More than 175 recreational pharmacies have opened since the sale of recreational marijuana was legalized in December 2019.
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