For the next few days, the Michigan Treasury will be distributing $59.5 million to the 160 cities and 64 counties that legalised retail marijuana sales in Michigan for the fiscal year 2022.
About $4,600 less per licence was awarded in 2021, but the total for the state increased by $17.3 million, setting a new yearly high. This applies to retail and micro businesses that are granted permission to operate between October 1, 2021, and September 30, 2022.
According to the Cannabis Regulation Agency’s analysis of tax returns, annual sales of marijuana grew by nearly $726 million in the fiscal year 2022 compared to the previous year. According to the Treasury study, however, 200 additional retail licences also contributed to the greater tax revenue split.
There were 574 retail licences that generated sales in 2022, up from 274 the previous year, which led to a higher payout. According to the Cannabis Regulation Agency’s online licencing system, there are currently more than 632 active retail licence holders.
The Treasury of Michigan reported that as of January 31, 2019, the Michigan Marijuana Fund had a total of $198.4 million available for distribution. These include the 10% excise tax on almost $1.8 billion in sales and other licence fees.
In 2021, the fund paid out $140.8 million, and the year before that, in 2020, it paid out $45.7 million.
In accordance with state law, the 10% excise must be distributed as follows: 30% to the municipalities and counties in which they are located; 35% to the School Aid Fund for K-12 education; and 35% to the Michigan Transportation Fund.
Through the end of the fiscal year in 2022, $69.4 million will be distributed to the school and transportation funds.
“The team at the CRA does a fantastic job and our effective regulatory strategy allows our licensees to deliver Michigan’s cannabis consumers the safest possible product,” stated CRA Executive Director Brian Hanna.
The CRA will do what it can to back up law-abiding licensees like cannabis shops, because “the cash that makes its way to local governments through the excise tax collected by licenced merchants is a significant benefit of the regulated cannabis business.”
