Michigan Allocates Nearly $100 Million in Cannabis Tax Revenue to Local Entities

LOS ANGELES- The Michigan Department of Treasury announced the distribution of close to $100 million in cannabis tax revenue to 302 local entities, including cities, villages, townships, counties, and, for the first time, four federally recognized tribes. This allocation stems from the state’s Marijuana Regulation Fund, which amassed over $331 million during the 2024 fiscal year.

Each eligible municipality, county, and tribe will receive more than $58,200 for every licensed retail store or microbusiness within their jurisdiction. These funds are derived from the state’s 10% excise tax on adult-use cannabis sales and associated fees. In addition to the nearly $100 million allocated to local entities and tribes, over $116 million was directed to the School Aid Fund for K-12 education, and another $116 million to the Michigan Transportation Fund.

State Treasurer Rachael Eubanks emphasized the impact of these funds, stating that they support schools, infrastructure, and local community projects. The inclusion of tribal governments in this distribution marks a significant development, with over $931,000 allocated among the four participating tribes.

This substantial distribution correlates with Michigan’s robust cannabis market, which reported over $3.29 billion in sales for 2024, reflecting a 7.6% increase from the previous year.