LANSING, Mich. (Michigan News Source) – Michigan’s state coffers will be getting greener after the Department of Treasury announced nearly $100 million in payments being dished out to 302 local entities and tribes – revenue from the state’s adult-use marijuana taxes that were collected in Fiscal Year 2024. With 108 cities, 36 villages, 80 townships, 74 counties, and 4 tribes slated to receive these funds, local governments are now officially “in the green.”
Flint will be receiving over $640K, Lansing over $1.3 million, Detroit over $3.1 million and even the sleepy town of Fife Lake in northern lower Michigan will take in over $58K.
Local love and tax relief: more than just a puff piece.
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Under the Michigan Regulation and Taxation of Marijuana Act, every licensed retail store and microbusiness essentially becomes a cash cow for its local community with each municipality, county, or tribe is set to pocket over $58,200 per license.
State Treasurer Rachael Eubanks said in a press release, “Starting this week, my team will begin to distribute adult-use marijuana payments to Michigan’s local units of government and tribal partners. The dollars received from the adult-use marijuana taxes and fees go toward schools, roads and back into Michigan’s neighborhoods. Local entities and tribes can spend these dollars however they deem fit for their needs.”
Education and infrastructure funding and cash for tribes.
Beyond the nearly $100 million earmarked for local entities, the state’s Marihuana Regulation Fund is also overflowing with over $331 million for the 2024 fiscal year. This treasure trove is divided among various priorities: more than $116 million goes to the School Aid Fund for K-12 education and another $116 million is earmarked for the Michigan Transportation Fund. In addition to that, $931,000 will be making its way to four federally recognized tribes in Michigan.
Cannabis and the communities: when highs meet high hopes.
Cannabis Regulatory Agency Executive Director Brian Hanna wasn’t shy about touting the marijuana act benefits either. According to him, local governments and tribes enjoy a range of perks – from good-paying jobs and community engagement to a nice little boost in revenue. It seems the tax dollars, levied from our state’s 10% adult-use marihuana excise tax and other fees, are not only filling the state’s budget but are also directly reinvested into the communities where these businesses operate.
For those curious about the nitty-gritty details on how much money the localities are getting, click here.
