$42+ million in Michigan marijuana tax revenue to be distributed to communities

Ingham County to receive more than $1 million from its 19 dispensaries
How $42M in Michigan marijuana taxes will be utilized
Published: Mar. 25, 2022 at 7:20 PM EDT
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LANSING, Mich. (WILX) - More than $42 million will be distributed to Michigan communities.

The funds come from tax revenue generated from Michigan marijuana shops. The marijuana industry has made a lot of money since the state legalized it in 2018.

Aside from the $42.2 million distributed to municipalities and counties, $49.3 million was sent to the School Aid Fund for K-12 education and another $49.3 million to the Michigan Transportation Fund.

Back in 2021, taxes were collected from 374 licenses in Michigan alone and now that money will be distributed to communities across the state.

Aaron Dimick, with the city of Jackson, said they won’t be setting aside funds for a specific project at this time, but they plan to look into ways to make the city more fun and safe.

“And it goes to pay for city services, like fixing roads, paying for police and fire and our parks,” Dimick said.

He added the city has plans to add more dispensaries in the future, but there’s no rush currently.

“We’ve been taking it slow,” Dimick said. “This is a new law and this is a new thing that our residents can take advantage of and we want them to take advantage of it so they don’t spend money outside the city.”

According to the Michigan Department of Treasury, cities and counties receive more than $50,000 per dispensary.

Owosso city manager Nathan Henne said they will get nearly $170,000 due to the city’s three dispensaries.

“Owosso has four licenses right now, but we are only operating with about three,” Henne said. “We have that fourth license that the facility has not opened yet and we are working with that company to get up and going.”

Henne said Owosso chose to use their marijuana tax money in 2021 to provide COVID relief funds to public works employees since they weren’t recognized with public safety workers when COVID funding was given out.

“Council felt that because the department of public works was left out of both programs, that they wanted to use part of this marijuana excise tax distribution for that purpose,” Henne said.

However, he said it’s not clear how the money will be spent in Owosso in 2022, but he can confirm that they are seeing more money than 2021.

“The marijuana industry business is good and it’s better than last year,” Henne said. “I think that’s one reason why we’re seeing much more in our excise tax distribution for this new marijuana tax.”

Read more: Michigan’s revenue sharing programs

A breakdown of how much money is available for each Mid-Michigan municipality can be seen below:

East Lansing$169,360.32
Easton Township$56,453.44
Ionia City$112,906.88
Jackson City$56,453.44
Leoni Township$451,627.52
Parma Township$56,453.44
Pulaski Township$56,453.44
Hillsdale County$282,267.20
Ingham County$1,072,615.36
Ionia County$169,360.32
Jackson County$620,987.84
Shiawassee County$225,813.76

A complete list of how much money is available statewide can be seen below:

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