Posted by Wojo Co on under General

Distributing $100M in Marijuana Tax Revenue

Detroit is set to receive over $3 million in cannabis tax revenue, making it the top-earning municipality in Michigan. The Michigan Department of Treasury announced in February that nearly $100 million in tax revenue from marijuana sales will be distributed among 302 local governments and tribal entities. Each qualifying city, township, and county will be allocated approximately $58,000 for every licensed cannabis retailer and microbusiness, based on funds collected from the state’s 10% excise tax on recreational marijuana.

This year’s distribution closely mirrors last year’s, when 269 municipalities shared $87 million in cannabis tax revenue.

Detroit once again leads all Michigan cities in tax allocations, marking its second year receiving funds after launching recreational marijuana sales in early 2023. Wayne County also retains its position as the highest-earning county, collecting $5 million in revenue.

A new addition this year is the inclusion of four federally recognized tribal nations in Michigan, which will divide over $930,000 under a recent legislative change.

“Local governments and tribal communities gain significant benefits from their cannabis businesses, from job creation and community engagement to additional revenue that supports key budget priorities,” said Brian Hanna, executive director of Michigan’s Cannabis Regulatory Agency.

Beyond the municipal distributions, the state also allocated over $116 million each to the School Aid Fund for K-12 education and the Michigan Transportation Fund.

Top Municipalities Receiving Cannabis Tax Revenue

Detroit – $3.1 million

Ann Arbor – $1.5 million

Grand Rapids – $1.5 million

Lansing – $1.4 million

Kalamazoo – $1.1 million

Battle Creek – $932,000

Traverse City, Ypsilanti, Coldwater, Bay City, Bangor Township – $757,000

Local Cannabis Tax Revenue for Bay County and Pinconning Township

Bay County received $1,630,402.48, based on 28 licensed cannabis businesses operating in the county.

Pinconning Township received $116,457.32, with two licensed businesses contributing to its share of the revenue.

For a complete breakdown of tax revenue allocations, visit Michigan.gov/RevenueSharing.