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Recreational Marijuana Payments

Posted on March 3, 2021 by Dene Westbrook

On March 4, the Michigan Department of Treasury will begin distributing more than $45.7 million collected from taxes and fees under the Michigan Regulation and Taxation of Marihuana Act (Initiated Law 1 of 2018).

As part of the Act, after funding statutorily defined distributions, disbursements will be as follows:

  1. 15% to municipalities in which a marijuana retail store or a marijuana microbusiness is located, allocated in proportion to the number of marijuana retail stores and marijuana microbusinesses within the municipality.
  2. 15% to counties in which a marijuana retail store or a marijuana microbusiness is located, allocated in proportion to the number of marijuana retail stores and marijuana microbusinesses within the county.
  3. 35% to the School Aid Fund to be used for K-12 education.
  4. 35% to the Michigan Transportation Fund to be used for the repair and maintenance of roads and bridges.

Distributions to Local Units of Government

Cities, villages, townships and counties will be receiving nearly $10 million under the Act. The distribution rate for FY 2020 Recreational Marijuana payments is slightly over $28,000 per licensed marijuana retail store and microbusiness.

Each city, village, and township will receive a payment based on the number of licensed marijuana retail stores and microbusinesses located within its jurisdiction. In addition, counties will receive a payment based on the number of licensed marijuana retail stores and microbusinesses located within its jurisdiction.

A listing of Recreational Marijuana payments can be found in the following document:

Questions? Comments?

For more information about distributions under the Michigan Regulation and Taxation of Marihuana Act, go to www.michigan.gov/revenuesharing. Questions regarding Recreational Marijuana payments can be emailed to TreasRevenueSharing@michigan.gov or call 517-335-7484.

Jennifer Rigterink is a legislative associate for the League handling economic development, land use and municipal services issues.  She can be reached at jrigterink@mml.org or 517-908-0305.

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