How taxes collected from $1.1B in recreational marijuana sales benefits communities

Legal marijuana may be on Michigan ballot 2018
Posted at 5:03 PM, Mar 25, 2022
and last updated 2022-03-25 18:13:25-04

ANN ARBOR, Mich. (WXYZ) — Pot is raising money for schools, potholes and communities.

This week, the Michigan Department of Treasury announced that more than $1.1 billion in adult-use marijuana sales was reported for the fiscal year of 2021.

The 10% tax on recreational marijuana raised about $111 million in 2021. In total, there was $172 million available for distribution from the fund. For now, $42.2 million will be disbursed to municipalities and counties. Also, the School Aid Fund for K-12 education and the Michigan Transportation Fund will each receive $49.3 million.

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The city that received the most tax revenue from recreational marijuana sales was Ann Arbor. It will receive just over $1.4 million. The city plans to use the funding on mental health, substance abuse, and marijuana conviction expungement programs.

“It is good to know that we are doing something that is affecting the state of Michigan,” said Bazonzoes Provisioning Center Founder Anthony Virga.

LIST: Adult Use Marijuana Payments Based on Revenues Collected in Fiscal Year 2021 March 2022

Virga says as a dad, it means a lot to him to know that the 10% recreational marijuana tax and six percent sales tax will help the schools.

“Walled Lake School system is a great school system to support, so that is awesome,” he said.

Washtenaw County Road Commission Communications Manager Emily Kizer says the commission expects to get about half a million dollars.

“I think it is important for people to know pot for potholes is a thing. It is not a huge deal, but we will take any revenue we can,” said Kizer.

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Senior Communications Manager at the Road Commission For Oakland County Craig Bryson agrees. He says it's important the public knows that the recreational marijuana tax revenue does not solve the problem of funding the roads.

Bryson says, “It's estimated we will get about $1.8 million, which is about one percent of our funding."