The cash is distributed primarily based on the variety of marijuana companies of their borders.
This story was reprinted with permission from Crain’s Detroit and written by Dustin Walsh.
Michigan counties and municipalities that enable marijuana companies of their borders will break up $87.1 million in tax income collected in 2023. That’s almost $30 million greater than final 12 months.
Underneath state regulation, counties break up 30% of the tax income collected from the ten% excise tax on leisure marijuana gross sales with cities, townships and villages. The cash is distributed primarily based on the variety of marijuana companies of their borders. The quantity of product offered from every license holder will not be thought-about when distributing that tax income; it’s purely primarily based on the variety of license holders in every neighborhood.
Marijuana has grow to be a serious income for the state and its municipalities and one of many largest “sin tax” mills within the state.
Through the 2023 fiscal 12 months, which ended on Sept. 30, the state of Michigan collected $73.6 million extra in leisure marijuana excise taxes than beer, wine and liquor taxes mixed, in response to a Home Fiscal Company report launched in November.
The 198 cities, villages and townships which have opted to permit weed companies to function will obtain greater than $43.5 million, and the 71 counties by which these municipalities exist will divvy up the remaining $43.5 million, in response to paperwork from the Division of Treasury obtained by Crain’s.
That interprets to every neighborhood receiving $59,086.35 per licensed marijuana enterprise inside their borders. That’s up from $51,841.21 per license in 2022.
Hashish gross sales in Michigan topped $3.06 billion final 12 months, or about $305 value of marijuana for each individual within the state, in response to knowledge from the Michigan Hashish Regulatory Company. On a per capita foundation, Michigan is the highest hashish market within the nation.
Through the 2023 fiscal 12 months, complete marijuana taxes collected totaled $290.3 million, in response to the Michigan Treasury. Moreover the distribution to municipalities, $101.6 million every will go the College Help Fund and the Michigan Transportation Fund.
That quantities to 0.57% of the $17.8 billion College Help Fund and a pair of.75% of the $3.7 billion Transportation Fund.
Town of Detroit will get the most important municipal distribution from tax income resulting from it having the most important quantity of marijuana licenses at 33, surpassing Ann Arbor for the primary time. Town will obtain $1.95 million from the fund. Ann Arbor is ready to obtain $1.54 million, in response to Treasury knowledge.
Wayne and Washtenaw counties may even obtain the most important slice of the income for counties at $3.5 million and $2.7 million, respectively.
However it’s small communities within the state which have opened as much as marijuana which are seeing the best impression.
Town of Huge Rapids, with fewer than 9,000 residents and 15 marijuana license holders, will obtain greater than $886,000 in income from the tax fund. That’s almost 13% of the town’s complete tax assortment. Emmet Township, a municipality with fewer than 12,000 residents and 13 marijuana license holders, will obtain greater than $768,000, or about 17.5% of its complete tax income.
Monroe Township, which is a scorching locale for dispensaries given its proximity to the Ohio border, will obtain greater than $945,000 from the marijuana fund, totaling greater than 22% of the township’s complete income.
Solely about 15% of the state’s 1,773 municipalities have opted in to permit marijuana gross sales, which means greater than 1,500 municipalities within the state will obtain no tax {dollars} from the Marihuana Regulation Fund.
Listed below are the most important distributions for cities, villages, and townships:
- Detroit – $1,949,849.55
- Ann Arbor – $1,536,245,10
- Lansing – $1,418,072.40
- Grand Rapids – $1,358,986.05
- Kalamazoo – $1,063,554.30
- Monroe Township – $945,381.60
- Bangor Township; Battle Creek; Huge Rapids – $866,295.55
- Ypsilanti; Emmet Township – $768,122.55
- Traverse Metropolis – $709,036.20
- Adrian; Coldwater; Muskegon – $649,949.85
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