Declining marijuana tax revenue may mean less money for social services in Ann Arbor.
Marti Praschan, the city’s chief financial officer, raised the issue at a City Council budget work session Monday night, March 23, discussing changes with Michigan marijuana taxes and the various Ann Arbor programs those dollars help fund.
She noted House Bill 4951 of 2025, now state law, imposes a new 24% excise tax on wholesale marijuana sales and directs revenue to local streets. At the same time, the state’s gas taxes have increased, she noted.
Most of the tax revenue the state shares with communities is dependent on consumer behavior, so with gas now costing about $4 per gallon, that’s impacting households that have less buying power and are purchasing less, Praschan said.
