FLINT, MI – Flint, Burton, and Genesee Counties collectively received $ 504,074 from the Treasury Department based on the Michigan Regulation and Taxation of Marijuana Act.
This is the first year municipalities and counties make money from marijuana sales tax revenues.
Genesee County has 10 marijuana retail / micro business licenses that generated $ 280,013 from marijuana revenues in 2020.
Mark Young, chairman of the Genesee County Board of Commissioners, said the money could be used for some of the county’s unfunded liabilities.
“My hope would be to examine long-term unfunded liabilities such as retiree health care as they progress,” Young told MLive-The Flint Journal. “If we just start using such a source of income, it has the potential … to have a significant impact on it in the long run.”
The county’s total budget is over $ 300 million, and a nine-person board of directors decides how the money is spent each fiscal year. The county’s budget has been in deficit for the past two years, Young said.
“At one point we were $ 10.2 million less than income and expenses,” said Young. “We’re down about $ 6.5 million at this point.”
The chairman said the county did not expect the money because it was such a new source of income.
The Michigan Treasury Department announced that it is beginning to distribute nearly $ 10 million in funds to more than 100 parishes and counties under the Michigan Regulation and Taxation of Marijuana Act. Payments are based on taxes levied and levied on sales of adult marijuana products in fiscal 2020.
“The revenue from marijuana taxes and fees is important to our local governments,” said Treasurer Rachael Eubanks. “During this extraordinary time, our employees are working on bringing these payments to the communities and districts affected. Every dollar helps now. “
Burton received sales tax revenue of $ 140,060 on marijuana from recreational marijuana companies. The city has five licenses.
Burton Mayor Duane Haskins recognizes that the money is a great addition to the city budget, but he has a realistic approach to how much the money could affect the area. He found that it would cost $ 1 million to repair a mile of road.
“There is additional revenue that we can use – and we hope we can use this money – that we need to reach with the city council, but we hope that we can use this money to invest in our local streets neighborhoods and the like, ”said Haskins, noting that local roads have been neglected over the years due to funding problems.
Haskins said there weren’t any big plans in the works because it was unexpected money.
“I hope we can do great things with the $ 140,000, even if it doesn’t go that far,” he said.
For fiscal 2020 for the state of Michigan, more than $ 31 million was recovered from 10% adult marijuana excise tax. Together with fees, a total of $ 45.7 million was available for distribution from the fund.
Aside from the nearly $ 10 million in community and county disbursements, approximately $ 11.6 million will go to the School Aid Fund for K-12 Education and another $ 11.6 million to the Michigan Transportation Fund .
The remaining $ 12.5 million will be used for startup and administrative costs, according to a Michigan Treasury Department press release.
In total, more than $ 341 million in adult marijuana sales were reported for fiscal 2020.
Flint received $ 84,003 from his three licenses.
The city doesn’t have a specific use for the money just yet, city communications director Marjory Raymer said in an email to MLive-The Flint Journal.
“The Flint City Legal Department is investigating the issue to ensure the money is being spent appropriately in accordance with the law,” said Raymer.
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