Local governments in Michigan will receive $54,017 per licensed cannabis dispensaries in their jurisdictions as their share of nearly $94 million in adult-use cannabis tax revenue collected in 2025.
Detroit, Grand Rapids, Lansing and Ann Arbor are the biggest recipients.
According to the Michigan Department of Treasury’s 2026 distribution report a total of $83,773,685.60 was distributed based on cannabis revenues collected during 2025.
Of that:
- $46.9 million went to cities, villages and townships
- $46.9 million went to counties
- $54,017.10 was paid per licensed retail store or microbusiness
The payments are required under the Michigan Regulation and Taxation of Marihuana Act (MRTMA), which directs a portion of the state’s 10% excise tax to local governments that allow marijuana retail operations within their borders.
A total of 868 licensed retail stores and microbusinesses qualified for distributions statewide.
The report also details distributions to tribal governments.
Four federally recognized tribes received both municipal and county-style payments totaling $864,273.60, based on eight qualifying licenses located on tribal lands
Total Statewide Impact
In total:
- 238 municipalities and tribal units received payments.
- 79 counties and tribal units received payments.
- The combined distribution reached $93.77 million statewide
Detroit Leads All Municipalities
Because distributions are tied directly to the number of licensed retail stores, larger cities with more dispensaries saw the biggest payouts.
Here are the top municipal recipients:
| City | Licenses | Distribution |
| Detroit | 61 | $3,295,043.10 |
| Grand Rapids | 27 | $1,458,461.70 |
| Lansing | 26 | $1,404,444.60 |
| Ann Arbor | 23 | $1,242,393.30 |
| Kalamazoo | 19 | $1,026,324.90 |
| Flint | 12 | $648,205.20 |
| Traverse City | 11 | $594,188.10 |
| Hazel Park | 11 | $594,188.10 |
Detroit’s payout alone topped $3.29 million, reflecting its 61 licensed retail stores.
College towns also ranked high. Ann Arbor received over $1.24 million, while East Lansing collected $270,085.50 from five licenses.
In West Michigan, Grand Rapids received nearly $1.46 million, and Kalamazoo topped $1 million.
Counties See Even Larger Totals
County distributions are calculated using the same per-license formula, meaning counties benefit from every licensed retail store located within their borders — regardless of which municipality hosts the business.
The largest county distributions include:
| County | Licenses | Distribution |
| Wayne County | 98 | $5,293,675.80 |
| Oakland County | 49 | $2,646,837.90 |
| Washtenaw County | 44 | $2,376,752.40 |
| Kent County | 39 | $2,106,666.90 |
| Genesee County | 35 | $1,890,598.50 |
| Ingham County | 35 | $1,890,598.50 |
Wayne County received more than $5.29 million, the largest single county payout in the state.
Smaller Communities Also Benefit
While large cities dominate headlines, dozens of smaller communities also saw meaningful budget boosts.
Examples include:
- Muskegon: $540,171.00
- Mount Pleasant: $756,239.40
- New Buffalo Township: $1,404,444.60
- Jackson: $270,085.50
- Portage: $378,119.70
In many communities, these funds are used for infrastructure improvements, public safety, parks, or general fund support.
The law does not restrict how municipalities spend the money.
Since adult-use marijuana sales began in December 2019, local distributions have steadily increased as the number of retail licenses has grown.
The FY 2025 distribution reflects the continued expansion of Michigan’s marijuana retail footprint — even as wholesale pricing pressures and new tax debates continue within the industry.
Full List Available
A complete list of all municipalities, counties and tribal governments receiving FY 2025 adult-use marijuana tax distributions is available through the Michigan Department of Treasury report.
