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Michigan municipalities, counties, and tribes receive significant funds from cannabis tax revenue, supporting local communities and infrastructure.
Marijuana Tax Revenue Boosts Michigan Communities with $100 Million Disbursement
LANSING – The Michigan Department of Treasury has announced the distribution of nearly $100 million in adult-use marijuana revenue to 302 local entities and tribes across the state. This marks a significant increase in funding for Michigan communities benefiting from the legal cannabis industry.
A total of 108 cities, 36 villages, 80 townships, 74 counties, and four federally recognized tribes will receive payments from the Marihuana Regulation Fund this week. Each eligible municipality, county, and tribe will be allocated $58,228 for every licensed retail store and microbusiness operating in their jurisdiction.
“The dollars received from the adult-use marijuana taxes and fees go toward schools, roads, and back into Michigan’s neighborhoods,” said State Treasurer Rachael Eubanks. “Local entities and tribes can spend these dollars however they deem fit for their needs.”
Funding Breakdown: How the Marijuana Revenue is Distributed
For the 2024 fiscal year, more than $331 million was collected from Michigan’s 10% adult-use marijuana excise tax and associated fees. The distribution of this revenue is legally mandated, with allocations divided as follows:
- $99.4 million to municipalities, counties, and tribes
- $116.5 million to the School Aid Fund for K-12 education
- $116.5 million to the Michigan Transportation Fund for roads and bridges
Municipalities that approved adult-use cannabis businesses are among the biggest beneficiaries of these funds, supporting essential services and infrastructure improvements.
Michigan Tribes Receive Cannabis Revenue for the First Time
For the first time since the legalization of recreational marijuana in 2018, federally recognized tribes in Michigan are included in the revenue distribution. More than $931,000 has been allocated to four tribes:
- Grand Traverse Band of Ottawa and Chippewa Indians
- Hannahville Indian Community
- Little Traverse Bay Bands of Odawa Indians
- Sault Ste. Marie Tribe of Chippewa Indians
These funds allow tribal governments to support economic development, public health initiatives, and community programs.
Cities and Counties Receiving the Largest Cannabis Payments
Major cities benefiting from the marijuana tax revenue include:
- Detroit – $3.14 million
- Ann Arbor – $1.51 million
- Grand Rapids – $1.45 million
- Flint – $640,515
- Lansing – $1.39 million
- Kalamazoo – $1.10 million
Among counties, Wayne County received the largest amount at $5 million, followed by Oakland County with $2.91 million and Kent County with $2.27 million.
Why Sanilac and Huron Counties Did Not Receive Funds
Sanilac and Huron counties did not receive any funding from the Marihuana Regulation Fund because they do not have any licensed marijuana retail stores or micro businesses operating within their jurisdictions. Under Michigan’s cannabis revenue-sharing program, funds are only allocated to municipalities and counties that permit and host licensed cannabis businesses. Since these two counties have opted out of allowing adult-use marijuana businesses, they are not eligible for tax revenue distributions from the state’s excise tax on cannabis sales.
The Economic and Community Impact of Cannabis Revenue
Since Michigan voters legalized recreational marijuana, the industry has rapidly grown, generating billions in sales and substantial tax revenue. The Cannabis Regulatory Agency (CRA) highlights the economic benefits, including job creation, increased property values, and enhanced public services.
“Municipalities, counties, and tribes certainly benefit from their local cannabis businesses in many ways, including good-paying jobs, community involvement, and increased revenues for important priorities in their budget,” said CRA Executive Director Brian Hanna.
Despite the financial benefits, some communities still opt out of allowing cannabis businesses, citing concerns over regulation, crime, and social impact.
Looking Ahead: Future of Marijuana Revenue in Michigan
The success of Michigan’s adult-use marijuana program continues to drive economic growth and funding for critical services. With sales exceeding $3 billion since legalization, stakeholders expect these disbursements to increase in coming years. However, policy discussions on taxation levels, distribution methods, and potential federal legalization may impact future allocations.
For a detailed breakdown of cannabis tax distributions, visit Michigan.gov/RevenueSharing.
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