LANSING, Mich. — Millions of dollars are going to municipalities across the state, and it’s all because of recreational marijuana.
In the 2020 fiscal year, Michigan brought in roughly $46 million in tax revenue from recreational marijuana sales.
Municipalities that allow recreational marijuana businesses get a share of that, $28,000 for each licensed marijuana store or microbusiness.
Ingham County will get more than $300,000 in tax revenue. Lansing will get $280,000 and East Lansing will get $28,000. Jackson County will receive $224,000. Leoni Township east of Jackson will get $168,000.
Chris Kretschmer is the manager at Homegrown, a Lansing dispensary. He says despite the pandemic, profits have thrived.
“Just the tax dollars generated...it’s a huge number that can go back to so many important aspects of this city whether it’s roads, schools,” Kretschmer said. “There’s just a lot of ways this can be beneficial.”
The marijuana tax money is just a drop in the city of Lansing's roughly $137 million annual budget, but Mayor Andy Schor says the revenue is still welcome.
“It’s always helpful to have the extra dollars for the budget as we provide services to the city of Lansing especially as we’re going through COVID and still trying to fix roads and provide parks and other services,” Schor said. “Every dime is important.”
A portion of the tax revenues will go toward K-12 education and Michigan transportation funds. The remaining money will be used for start up and administrative costs.
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