Marijuana Sales Tax Earns $700k+ for Kalamazoo and Battle Creek
It took some time, but now that recreational marijuana shops are doing business in Michigan, local economies are seeing the benefits.
Opinions may change about the proliferation of recreational marijuana shops all around the state when people hear this news. For the state of Michigan’s 2020 fiscal year, more than $31 million was collected from the 10% adult-use marijuana excise tax. That money, along with revenue from fees adds up to more than $45 million for the Michigan economy. Eligible municipalities and counties will receive about $28,000 for every licensed retail store or microbusiness- that adds up to big money for Southwest Michigan.
The revenue generated from marijuana taxes and fees is important to our local governments. In this extraordinary time, our staff is working to get those payments to impacted municipalities and counties. Every dollar helps right now.
-State Treasurer Rachael Eubanks
There's no denying that recreational marijuana sales are great for the economy. Michigan ranked sixth in job creation, adding 18,000+ cannibus-related jobs.
Michigan doubled its legal cannabis workforce in a single year. There are now more cannabis workers than cops in Michigan. In a state known for its auto industry, the number of cannabis workers is now roughly equal to the number of auto repair mechanics.
-Leafly Jobs Report 2021
Michiganders smoked more than any other state during COVID. In total, more than $341 million in adult-use marijuana sales was reported for fiscal year 2020. Michigan Department of Treasury does the math, collects that tax and doles out the monies. Aside from the nearly $10 million in disbursements to municipalities and counties, 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. The remaining $12.5 million amount will be used toward start-up and administrative costs. Here's what went to Kalamazoo and Battle Creek:
Calhoun County | 13 licenses | $364,017
- City of Battle Creek | 5 licenses | $140,006
- Emmet Township | 7 licenses | $196,009
- Tekonsha | 1 license | $28,001
Kalamazoo County | 12 licenses | $336,015
- City of Kalamazoo | 6 licenses | $168,007
- City of Portage | 2 licenses | $56,002
- Kalamazoo Township | 4 licenses | $112,005
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