David Harns, spokesman for the Department of Licensing and Regulatory Affairs which oversees the Bureau of Medical Marihuana Regulation said the state collected $9.8 million in 2016 from medical marijuana card fees at $60 per card. Cards are renewed every two years.
Revenue is expected to increase significantly starting next year when the state rolls out five new licenses for marijuana businesses including dispensaries. The state will collect a 3 percent excise tax on gross receipts from dispensaries on top of the 6 percent sales tax.
The businesses will be able to locate in municipalities that opt into the new licensing program. So far, nine municipalities have adopted ordinances to opt in..
Here’s how the marijuana tax revenue will be split up, according to a House Fiscal Agency analysis:
30 percent to the state. 25 percent to the cities that opt into the new licensing program and allow marijuana facilities. 30 to the counties where facilities are located. 5 percent the Sheriff’s offices in those counties. 5 percent to the state police. 5 percent to train local law enforcement officers.
The tax is expected to generate about $74 million,the House Fiscal Agency analysis shows: $24 million in pot taxes, plus $50 million from the state’s sales taxes.
Michigan still has a long way to go to catch up to states that have been taxing marijuana for years. Oregon levies 17 percent on recreational marijuana and made $60.2 million in 2016. Washington state, meanwhile, is expected to collect $730 million over the next two years from its 37 percent sales tax on marijuana.
The economic benefit of marijuana is the subject of debate. In Washington, for instance, more than 60 percent of the