Cannabis Tax Funds Sent to Municipalities and Counties in Michigan

On March 24, the Michigan Department of Treasury announced that $42.2 million in cannabis excise tax funds will be given to various cities, townships and counties in Michigan. These funds were collected during the 2021 fiscal year, with eligible municipalities and counties receiving funds for having retail stores or microbusinesses within its boundaries.

Michigan’s Marijuana Regulatory Agency Executive Director Andrew Brisbo shared that he’s proud to see how the state’s cannabis income is contributing to local communities. “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,” said Brisbo. “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.” Each municipality or county is eligible to “receive more than $56,400 for every licensed retail store and microbusiness located within its jurisdiction.”

The $42.2 million cannabis tax funds were collected from a total of 374 cannabis business licensees across the state, and will be divided between 62 cities, 15 villages, 33 townships and 53 counties. State Treasurer Rachael Eubanks said in a press release that these funds will be given to the chosen municipalities and counties soon. “The Michigan Department of Treasury will distribute these dollars as soon as practical to eligible local units of government,” said Eubanks. “The doubling of this year’s payment amounts will have a larger impact on local government budgets.”

Through the state’s 10% cannabis excise tax, over $111 million was collected in 2021 with a total of $172 million available for allocation. Additionally, $49.3 million was set aside for the School Aid Fund for K-12 education, and $49.3 million went toward the Michigan Transportation Fund.

In 2021, $10 million of the state’s cannabis excise tax funds were sent out to 100 municipalities (38 cities, seven villages, 21 townships and 38 counties). “The team at the Marijuana Regulatory Agency did a tremendous job getting the adult-use licensing program established and operating efficiently,” said Brisbo in 2021. “Infusing over $28,000 per retailer and microbusiness into local government budgets across the state is very impactful and shows how strong and successful the industry is becoming.”

The state is also welcoming its first cannabis consumption lounge in Hazel Park, called Hot Box Social, owned by Trucenta. “We are honored that Michigan has awarded us the state’s first license for a consumption lounge,” said Trucenta Chief Information Officer Nowfal Akash. “Our plan is to first use the space for corporate, social, and special events. Come summer, we’ll start scheduling events so the public can experience Hot Box Social with consumption-friendly activities like social gatherings, educational opportunities, and arts-focused activities.”

In the meantime, the High Times Cannabis Cup People’s Choice Edition has also returned to Michigan. While the competitor submission window has passed, judge kits will be available to the state starting on April 16. “While the majority of America is working from home, or not working at all, we now have the opportunity to test and rank quality cannabis products from a wide range of producers from the comfort of our own home to help crown the best in each state,” said Mark Kazinec, High Times Director of Competitions & Events. “For brands, this is the best way to get your product into the hands of hundreds of new consumers and get real feedback, especially in a time of no live events. For Judges, this is the best job you’ll ever have, and the best way to see which products work best for you.”