Recreational marijuana sales surpass $10M in Michigan, generating new taxes

by

comment
STEVE NEAVLING
  • Steve Neavling

Recreational marijuana sales surpassed $10 million after six weeks of being legal in Michigan.

The sales generated $1.7 million in new taxes for cash-strapped local governments and the state. The Marijuana Regulatory Agency has now approved 36 dispensaries that are permitted to sell cannabis to anyone over the age of 21. Six of them deliver. More dispensaries are expected to be approved in the next few months.



Detroit still has no recreational marijuana dispensaries after the city council imposed a last-minute moratorium on cannabis businesses. The city council is expected to soon establish rules and guidelines for recreational dispensaries and growers.

Nearly 80% of Michigan’s communities have passed laws preventing recreational marijuana businesses from opening, even though voters in most municipalities supported legalization of pot for anyone 21 years or older in November 2018.



Only three recreational dispensaries have been approved to open in metro Detroit: 1st Quality Medz and Herbology in River Rouge and Green House of Walled Lake in Walled Lake.

Unlike medicinal cannabis, recreational marijuana has a 10% excise tax and a 6% sales tax. Excise tax revenue goes to local governments, schools, and roads.

Recreational marijuana sales are expected to top $150 million in sales and excise taxes in the 2020-21 fiscal budget that begins in October, according to the Senate Fiscal Agency. By 2022-23, the agency projects the tax revenues will reach $262 million.

Stay on top of Detroit news and views. Sign up for our weekly issue newsletter delivered each Wednesday.

We welcome readers to submit letters regarding articles and content in Detroit Metro Times. Letters should be a minimum of 150 words, refer to content that has appeared on Detroit Metro Times, and must include the writer's full name, address, and phone number for verification purposes. No attachments will be considered. Writers of letters selected for publication will be notified via email. Letters may be edited and shortened for space.

Email us at letters@metrotimes.com.

Detroit Metro Times works for you, and your support is essential.

Our small but mighty local team works tirelessly to bring you high-quality, uncensored news and cultural coverage of Detroit and beyond.

Unlike many newspapers, ours is free – and we'd like to keep it that way, because we believe, now more than ever, everyone deserves access to accurate, independent coverage of their community.

Whether it's a one-time acknowledgement of this article or an ongoing pledge, your support helps keep Detroit's true free press free.