Whether one uses cannabis on a daily or frequent basis, imbibes occasionally, wants nothing to do with it, or is a staunch believer that legalization was a bad idea — and still is — there’s no denying that marijuana has blossomed into a multi-billion dollar industry in Michigan.
Not accounting for “black market” sales and casual transactions between friends, approximately $2.03 billion in recreational marijuana sales were reported in 2022 in Michigan, according to the Cannabis Regulatory Agency — the marijuana governing arm of the state’s Department of Licensing and Regulatory Affairs. Sales of medical cannabis products, requiring buyers to show a state-issued medical marijuana card, totaled another $256 million. And so far this year, as of July 31, recreational marijuana sales topped $1.6 billion, while medical marijuana sales inched toward $59 million.
July’s recreational marijuana reported sales, at $270,603,217, were the highest ever in the state — continuing an upward trend that’s been seen all year. A reverse trend, however, has emerged in the past several months for medical marijuana sales, which started the year at just over $11 million in January and have gradually declined each month. In July, reported medical marijuana sales had fallen to $6.1 million, according to the CRA.
It’s been nearly five years since Michigan voters made recreational “adult use” marijuana legal, and close to 15 years since medical marijuana sales were approved for those who obtained a doctor’s OK based on certain diseases and conditions. Once the state ballot measures were passed — in 2018 for recreational and 2008 for medical — local governments had to figure out how, and if, cannabis stores, growers and other businesses requiring marijuana-related licensure would become part of their communities.
While some said “no” for various reasons, there were those who jumped on board relatively quickly, perhaps incentivized by a portion of the sales and excise tax revenue dedicated specifically to those communities who opted in. Others stepped back with a wait-and-see approach, with some of them eventually welcoming such businesses over the past few years. And a number of municipalities have kept it as an option for future consideration.
Both categories of cannabis are hit with the state’s 6 percent sales tax, while recreational marijuana sales have an additional 10 percent excise tax on the already sales-taxed items — for a total 16.6 percent tacked on at the cash register. That money is eventually distributed, with 15 percent divided up among municipalities that have cannabis retailers and 15 percent divided up among counties where those municipalities are located. Another 35 percent is designated for the School Aid Fund for K-12 education, and the remaining 35 percent goes to the Michigan Transportation Fund.
For fiscal year 2022, tax revenue distributions from marijuana sales in Michigan totaled $59,513,709, with $29,756,854 going to eligible cities, villages and townships; the same amount was distributed among eligible counties. In the tri-county area, Oakland County — with 22 licensed retailers — had the highest share of the three with $1,140,506, followed by Wayne County — with 20 licensed retailers — receiving $1,036,824 and Macomb — with 14 licensed retailers — receiving $725,776, according to the CRA.
Throughout the state, 171 municipalities have “opted in” for medical marijuana facilities while 2,080 have opted in for recreational marijuana facilities as of July 31, 2023, the CRA is reporting.
Of the various medical conditions the state has determined can warrant a medical marijuana card, the top three reported for fiscal year 2022 — which made up the vast majority — were chronic pain, severe and chronic pain, and arthritis. Qualifying patients totaled 195,776 and there were 21,698 primary caregivers. Providing written certifications for the registries were 1,199 physicians, the CRA reported.
The Oakland Press reached out for comment from the CRA but didn’t receive a response by publication time.
The State of Michigan provides additional information on the marijuana industry including how to obtain a license, financial reporting rules, locating a cannabis business in specific areas, filing a complaint against a business and more at https://www.michigan.gov/cra.
Pot smell and safety concerns ignite disputes over public smoking
Celebrate high summer with these 5 taste-bud-tickling weed drinks
As more states legalize pot, their uneven safety rules can pose a risk
Waterford couple wins $40K cannabis-infused wedding package from marijuana retailer
Recent Comments