Report: Legalized recreational pot could bring in $262M in new tax revenue by 2023

Posted at 7:38 AM, Oct 17, 2018
and last updated 2018-10-17 07:38:12-04

If Michigan voters approve the legalization of recreational marijuana next month, that could bring hundreds of millions of dollars in new tax revenue to the state by 2023.

That's according to a new report from the nonpartisan Senate Fiscal Agency.

If voters pass Proposal 1 in November, the analysis found that by 2022-23, Michigan could get $287.9 million in new tax revenue.

The state estimates the costs of law enforcement and regulation by counties and municipalities are projected to cost $25.9 million, still predicting $262 million in net tax revenue.

The breakdown of the money distribution is below:

  • School Aid Fund: $140.2 million
  • Michigan Transportation Fund: $62.8 million
  • Counties: $26.9 million
  • Municipalities: $26.9 million
  • General Fund: $17.6 million
  • Constitutional Revenue Sharing: $10.6 million
  • Administration/Enforcement: $2.8 million

The ballot language for Proposal 1 that will be on the ballot on Tuesday, Nov. 6 can be read below.

This proposal would:

  • Allow individuals 21 and older to purchase, possess and use marijuana and marijuana-infused edibles, and grow up to 12 marijuana plants for personal consumption. 
  • Impose a 10-ounce limit for marijuana kept at residences and require amounts over 2.5 ounces be secured in locked containers. 
  • Create a state licensing system for marijuana businesses and allow municipalities to ban or restrict them. 
  • Permit retail sales of marijuana and edibles subject to a 10% tax, dedicated to implementation costs, clinical trials, schools, roads, and municipalities where marijuana businesses are located. 
  • Change several current violations from crimes to civil infractions.
  • Should this proposal be adopted?