Detroit to receive nearly $2 million in marijuana tax revenue, the most of any city

Adrienne Roberts, Detroit Free Press

Detroit will receive the largest portion of the more than $87 million in marijuana tax revenue that's being distributed among the 269 municipalities that allow these businesses, the Michigan Department of Treasury said Thursday.

Detroit, which has 33 recreational marijuana dispensaries, will receive nearly $2 million in revenue collected from the 10% recreational marijuana excise tax, the most of any city. Each eligible municipality and county will receive $59,000 for every licensed retail store and microbusiness.

Wayne County, which has a total of 59 dispensaries and microbusinesses, will receive $3.5 million, the most of any county.

Cody Mathis, 31, of Crystal Lake, Ohio, left, looks at the cannabis products with his friend Robert Moore, 65, of Vandalia, Ohio, at House of Dank on Fort Street in Detroit on Jan. 4, 2023, as budtender Raven Campbell, 32, looks on from the right. After years of delay, recreational marijuana finally went on sale in Detroit.
Cody Mathis, 31, of Crystal Lake, Ohio, left, looks at the cannabis products with his friend Robert Moore, 65, of Vandalia, Ohio, at House of Dank on Fort Street in Detroit on Jan. 4, 2023, as budtender Raven Campbell, 32, looks on from the right. After years of delay, recreational marijuana finally went on sale in Detroit.

This is the first time that Detroit will get tax revenue from marijuana businesses, as sales of recreational marijuana started in the city in early 2023.

Revenue was collected from 737 licensees among the state's cities, villages and townships during the 2023 fiscal year. The $87 million that was collected is about a 46% increase from the $59.5 million in tax revenue that was collected for the 2022 fiscal year.

More on how communities spend the money: Metro Detroit communities allowing cannabis sales using tax revenues in variety of ways

More on the cannabis industry: Michigan's cannabis industry turns 5 this year: What to expect

More than $100 million was sent to the School Aid Fund for K-12 education and another $100 million went to the Michigan Transportation Fund.

Other municipalities that will receive more than $1 million in tax revenue:

  • Ann Arbor, which has 26 dispensaries and microbusinesses, will receive $1.5 million.

  • Grand Rapids, with 23 retail stores and microbusinesses, will receive $1.4 million.

  • Kalamazoo, with 18 dispensaries and microbusiness, will receive $1.1 million.

  • Lansing, with 24 dispensaries and microbusinesses, will receive $1.4 million.

For a full list of the amount of tax revenue each community will receive, go to Michigan.gov/Treasury.

Contact Adrienne Roberts: amroberts@freepress.com.

This article originally appeared on Detroit Free Press: Michigan communities will share a record $87M in marijuana tax revenue

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