Michigan’s Marijuana Billions Bringing in Tax Millions

Michigan’s marijuana industry has surged into a multi-billion dollar sector. In 2022, the Cannabis Regulatory Agency reported approximately $2.03 billion in recreational marijuana sales, with medical cannabis adding $256 million. The trend continues in 2023, with recreational sales exceeding $1.6 billion by July 31, and medical sales approaching $59 million.

July marked a peak in recreational sales at $270,603,217, sustaining a year-long upward trend. Conversely, medical marijuana sales declined recently, from over $11 million in January to $6.1 million in July, reports The Oakland Press. Michigan legalized recreational marijuana nearly five years ago, while medical sales have been permitted for almost 15 years based on physician recommendations.

Both cannabis categories are subject to a 6 percent sales tax, with recreational sales also incurring an additional 10 percent excise tax. This amounts to a 16.6 percent total at checkout. The resulting revenue is divided: 15 percent for municipalities with cannabis retailers, 15 percent for counties hosting these municipalities, 35 percent for the K-12 School Aid Fund, and another 35 percent for the Michigan Transportation Fund. In fiscal year 2022, tax revenue from marijuana sales reached $59,513,709, evenly distributed between eligible cities, villages, townships,