Michigan's booming marijuana market sending $87 million to cities, townships, villages that sell pot
(FOX 2) - Pot sales in Michigan continue to pay dividends for the cities and towns that allow the recreational purchase of marijuana by adults within their limits.
More than $87 million will be distributed to hundreds of cities, villages, townships, and counties based on the number of licensed retail store and microbusiness that operate within their borders. For each business running, a municipalities will get $59,000.
The pot of money is part of an even larger sum collected through the 10% excise tax on each marijuana sale. A total of $290.3 million in tax revenue was accrued in 2023.
Two other pots of $101.6 million each will be sent to state's school fund and transportation fund.
It's another sign of Michigan's booming marijuana market, after this year's tax haul came in about $28 million more than 2022's revenue sharing. In 2021, $42.2 million was shared under the same revenue model.
MORE: Michigan's booming marijuana market sending $87 million to cities
The city of Detroit alone brought in 1.9 million from the 33 marijuana business licenses operating in the city.
Here is a breakdown of each metro Detroit municipality and the funding being received:
Wayne County
- Belleville - $59,086,35
- Detroit - $1,949,849
- Hamtramck - $236,345
- Inkster - $354,518
- Lincoln Park - $118,172
- River Rouge - $472,690
- Wayne - $236,345
- Westland - $59,086
Oakland County
- Berkley - $118,172
- Ferndale - $354,518
- Hazel Park - $590,863
- Holly - $59,086
- Lake Orion - $59,086
- Madison Heights - $118,172
- Orion - $59,086
- Oxford - $236,345
- Pleasant Ridge - $59,086
- Royal Oak - $59,086
- Southfield - $118,172
- Walled Lake - $177,259
- Waterford - $177,259
Macomb County
- Center Line - $590,863
- Mount Clemens - $118,172
- New Baltimore - $177,259
- Romeo - $118,172
- Utica - $118,172
Washtenaw County
- Ann Arbor - $1,536,245
- Northfield Township - $177,259
- Pittsfield Township - $59,086
- Saline - $118,172
- Ypsilanti - $768,122
Monroe County
- Luna Pier - $59,086
- Monroe Township - $945,381
- Petersburg - $59,086
St. Clair County
- Memphis - $118,172
Marijuana business growth
While ingesting weed is legal in Michigan, governments still need to give approval for businesses to set up shop within their boundaries. The number of new dispensaries and microbusinesses has ballooned in Michigan in the past two years.
- In 2020, there were 104 municipalities that handed out 356 licenses for the sale of recreational weed
- In 2021, there were 163 municipalities that reported a total of 748 business licenses
- In 2022, 224 municipalities had registered 1,148 business licenses
- In 2023, 269 municipalities had registered 1,474 business licenses