It was just five days ago that the state of Michigan began officially selling recreational marijuana legally to all residents that were 21 years or older. No medical card needed.
So what happened that day?
According to local, and national, news outlets... it was a whopping $221,000 in sales!
So where does the sales tax from these legal go? Let's see...
From October 2018 to Feb. 4 (2019)-- the first four months of sales tracked in the program -- a total of $30.2 million in medical marijuana was sold, according to the Bureau of Marijuana Regulation
Theoretically, the state would have collected $1.8 million in sales tax during those four months if the standard six percent tax was applied
One news outlet is reporting that an estimated $18.2M in taxes will be collected this year (2019) alone. Now that's a lot of tax dollars! So how will the state disperse the collected tax?
Revenue from all of the state’s sales taxes is mostly allocated to the School Aid Fund, and a smaller portion is shared back with municipalities through its constitutional revenue sharing program -- though local officials have been critical in the past of how much money is actually returned to them.
In addition to the state’s six percent sales tax, medical marijuana is also subject to a three percent excise tax. To date the treasury has collected $112,800 from the excise tax, Leix said.
Medical Marihuana Excise Fund, of which 25 percent goes to local municipalities that agreed to allow medical marijuana facilities. The rest goes to county governments, first responders and police
That's A Lotta $$
Let's take the $221k and multiply that by 365 days (for the year)= 80,655,000
That's over $80 million dollars in sales... now the 6% sales tax= $4,839,900 in sales tax collected for one year. Keep in mind this is just recreational sales... don't forget about the medical marijuana sales. Can't find a reliable number for that.
And think about ALL the new jobs created.
Bud tenders, chemists, growers and trimmers. It's endless the amount of revenue the state is collecting! Because think about it... these people now have a job and they are spending their money. More sales tax generated by the cannabis industry.
- Northern Michigan Marijuana Shop
- Overview from December 2
- Recreational Marijuana sales from Day 1
- 2019 Collected Sales Tax from Cannabis
- Michigan Radio