(Source: MIRS.news, Published 03/25/2022). The Michigan Department of Treasury said 163 municipalities and counties will share $42.2 million from $172 million collected in taxes and fees on recreational marijuana sales, more than triple the amount from the first distribution in 2021.
The School Aid Fund for K-12 and Michigan Transportation Fund will also each receive $49.3 million from the tax revenue collected from $1.1 billion in recreational marijuana sales at 374 locations located in 62 cities, 15 villages, 33 townships and 53 counties across Michigan.
“The Michigan Department of Treasury will distribute these dollars as soon as practical to eligible local units of government,” State Treasurer Rachael Eubanks said. “The doubling of this year’s payment amounts will have a larger impact on local government budgets.”
Each of the counties and municipalities with businesses would be getting more than $56,400 for every licensed retail store and microbusiness.
Shelly Edgerton, chair of the Michigan Cannabis Manufacturers Association (MCMA), said she hopes the growing size of the disbursements would incentivize the areas that have not opted in to the recreational marijuana to open their doors.
“That’s just a large chunk of change to be dropped into your municipal budget and you can do what you want with it,” Edgerton said.
She said the marijuana industry is projecting $2 billion to $3 billion in sales in 2022, putting the state in the top cannabis markets in the nation. However, she said there was still room for growth.
One of the areas of growth she mentioned was tamping down the still-illicit marijuana market in Michigan. She cited a 2021 study from the Anderson Economic Group that claims two-thirds of the recreational cannabis market was from transactions that are not taxable.
Recreational marijuana is currently taxed at a rate of 10%.
To curb this the MCMA is backing
HB 5300, HB 5301, HB 5302, HB 5319, HB 5320, HB 5321, and HB 5562, what she called the Michigan Cannabis Safety Act.
“With alcohol, you don’t allow bootleggers to be running alongside the regulated industry, so it is an effort to bring more safety and regulation to the cannabis industry,” she said.
The bills would require a supermajority to pass in both the House and Senate.
Washtenaw County, with 32 businesses; Bay County, with 24 businesses; and Calhoun County, with 21 businesses, will be receiving the largest distributions.
Emmett Township, with 11 businesses, and the village of Kalkaska, with 7 businesses, will see the largest distribution for a township and village.
The city of Ann Arbor, with 25 businesses, will see the largest distribution, $1,411,336, for a city. It is known for the annual Hash Bash, which is expected in Ann Arbor April 2 with a new treasure hunt event.
“The 11 stops on the Hash Bash Treasure Hunt include provisioning centers, smoke shops, coffee houses and restaurants that represent the best of what Hash Bash and the Monroe Street Fair are all about,” Crystal Johnson, event organizer, said.
The Hash Bash started as a protest at the University of Michigan in 1972 after a Michigan Supreme Court decision about a law used to jail artist John Sinclair for possession of two marijuana cigarettes.
This will be the second distribution since recreational marijuana was legalized in Michigan in 2018.
Sales from 2020 were recorded at more than $341 million, and the first distribution of revenue from 2020 tax collection saw just over 100 municipalities and counties sharing $10 million.
“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,” Marijuana Regulatory Agency Executive Director Andrew Brisbo said.
(Source: MIRS.news, Published 03/25/2022). The Michigan Department of Treasury said 163 municipalities and counties will share $42.2 million from $172 million collected in taxes and fees on recreational marijuana sales, more than triple the amount from the first distribution in 2021.
The School Aid Fund for K-12 and Michigan Transportation Fund will also each receive $49.3 million from the tax revenue collected from $1.1 billion in recreational marijuana sales at 374 locations located in 62 cities, 15 villages, 33 townships and 53 counties across Michigan.
“The Michigan Department of Treasury will distribute these dollars as soon as practical to eligible local units of government,” State Treasurer Rachael Eubanks said. “The doubling of this year’s payment amounts will have a larger impact on local government budgets.”
Each of the counties and municipalities with businesses would be getting more than $56,400 for every licensed retail store and microbusiness.
Shelly Edgerton, chair of the Michigan Cannabis Manufacturers Association (MCMA), said she hopes the growing size of the disbursements would incentivize the areas that have not opted in to the recreational marijuana to open their doors.
“That’s just a large chunk of change to be dropped into your municipal budget and you can do what you want with it,” Edgerton said.
She said the marijuana industry is projecting $2 billion to $3 billion in sales in 2022, putting the state in the top cannabis markets in the nation. However, she said there was still room for growth.
One of the areas of growth she mentioned was tamping down the still-illicit marijuana market in Michigan. She cited a 2021 study from the Anderson Economic Group that claims two-thirds of the recreational cannabis market was from transactions that are not taxable.
Recreational marijuana is currently taxed at a rate of 10%.
To curb this the MCMA is backing
HB 5300, HB 5301, HB 5302, HB 5319, HB 5320, HB 5321, and HB 5562, what she called the Michigan Cannabis Safety Act.
“With alcohol, you don’t allow bootleggers to be running alongside the regulated industry, so it is an effort to bring more safety and regulation to the cannabis industry,” she said.
The bills would require a supermajority to pass in both the House and Senate.
Washtenaw County, with 32 businesses; Bay County, with 24 businesses; and Calhoun County, with 21 businesses, will be receiving the largest distributions.
Emmett Township, with 11 businesses, and the village of Kalkaska, with 7 businesses, will see the largest distribution for a township and village.
The city of Ann Arbor, with 25 businesses, will see the largest distribution, $1,411,336, for a city. It is known for the annual Hash Bash, which is expected in Ann Arbor April 2 with a new treasure hunt event.
“The 11 stops on the Hash Bash Treasure Hunt include provisioning centers, smoke shops, coffee houses and restaurants that represent the best of what Hash Bash and the Monroe Street Fair are all about,” Crystal Johnson, event organizer, said.
The Hash Bash started as a protest at the University of Michigan in 1972 after a Michigan Supreme Court decision about a law used to jail artist John Sinclair for possession of two marijuana cigarettes.
This will be the second distribution since recreational marijuana was legalized in Michigan in 2018.
Sales from 2020 were recorded at more than $341 million, and the first distribution of revenue from 2020 tax collection saw just over 100 municipalities and counties sharing $10 million.
“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,” Marijuana Regulatory Agency Executive Director Andrew Brisbo said.
