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First recreational marijuana tax money going to municipalities, schools, roads

Lester Graham
Michigan Radio
A recreational marijuana retailer in Adrian, Michigan. It's one of six in the city which is getting $168 thousand as its share of tax and fee revenue.

For the first time, municipalities that allowed cannabis businesses to operate are getting their share of the ten percent recreational marijuana excise tax and other fees. More than 100 local governments are getting a share of close to ten million dollars from the 2020 fiscal year revenue.

Around $11.6 million will be sent to the School Aid Fund for K-12 education and another $11.6 million to the Michigan Transportation Fund.

“This means that each eligible municipality and county will receive around 28,000 dollars for every licensed retail store or microbusiness,” said Ron Leix, a spokesman for the Michigan Department of Treasury.

Washtenaw County had the largest number of marijuana businesses at 22 and is getting more than $616,000. Ann Arbor is home to 17 of those businesses and it will get more than $476,000.

Other leading municipalities include Bay County with 15 marijuana businesses. It will receive more than $420,000.

Credit Lester Graham / Michigan Radio
Michigan Radio
One of the twelve marijuana businesses in Lenawee County which borders Ohio.

Calhoun, Kalamazoo, and Lenawee Counties will each get between $336,000 and $364,000 dollars as their share.

The combined total of excise taxes and fees amounted to nearly $46 million in revenue.

“Around 11.6 million will be sent to the School Aid Fund for K-12 education and another 11.6 million to the Michigan Transportation Fund upon appropriation,” Leix said.

About $12.5 million will be used for startup and administrative costs.

The total sales at adult-use marijuana retailers and businesses was reported at $341 million.

Michigan voters approved recreational marijuana in 2018. The first licenses were not issued until late 2019.

Lester Graham reports for The Environment Report. He has reported on public policy, politics, and issues regarding race and gender inequity. He was previously with The Environment Report at Michigan Public from 1998-2010.
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