91.7 Ann Arbor/Detroit 104.1 Grand Rapids 91.3 Port Huron 89.7 Lansing 91.1 Flint
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

Study claims recreational marijuana will produce a big boost in tax revenues in Michigan

Steve Carmody
Michigan Radio

Legalizing recreational marijuana would net half a billion dollars in new state tax revenue over its first five years, that's according to a new study.

The study was commissioned by the group behind the November ballot question to legalize recreational marijuana in Michigan.

The tax revenue projection is based on the size of Michigan’s potential marijuana customer base payinga 10% excise tax and a 6% sales tax on marijuana purchases.

Colorado-based economist Andrew Livingston says more than four million Michiganders are potential customers.

“When you’re analyzing cannabis markets it’s important to look at the total number of people that have ever consumed,” says Livingston. “But the majority of consumption comes from those people who have consumed in the last month or so.”

Money from recreational marijuana sales would be earmarked for roads, schools and local governments.  

Opponents insistthere will be a social cost to legalizing marijuana in Michigan.

Steve Carmody has been a reporter for Michigan Public since 2005. Steve previously worked at public radio and television stations in Florida, Oklahoma and Kentucky, and also has extensive experience in commercial broadcasting.