According to the Michigan House Fiscal Agency’s October update, tax receipts for recreational sales for fiscal year 2023, which ended September 31, totaled more than $266 million. This is more than beer, wine and spirits combined.
The recreational tax rate in Michigan is 10 percent. Cannabis sales have an exceedingly healthy impact on the state budget, with considerable room to grow. While Michigan as a state has no licensing limitations, only 15 percent of municipalities allow for the sale, cultivation and manufacturing of the plant.
Beyond the ability for many operators in Michigan to remain solvent, additional headwinds remain. Last week’s referendum in Ohio to legalize adult-use cannabis sales in the Aviation State will negatively impact gross sales in Michigan – particularly in border towns like Morenci, which has 5 dispensaries.