The Michigan Department of Licensing and Regulatory Affairs announced on Mar. 3 that nearly $94 million will be distributed among 313 local government entities and tribes as part of the Michigan Regulation and Taxation of Marijuana Act.
This distribution will provide financial support to a range of municipalities, counties, and tribes across the state. The payments are funded by revenue generated from adult-use marijuana sales, reflecting the impact of legalized cannabis on local economies.
According to the announcement, a total of 114 cities, 39 villages, 81 townships, 75 counties, and four tribes will receive payments from the Marijuana Regulation Fund. Each eligible municipality, county, or tribe is set to receive $54,017.10 for every licensed retail store or microbusiness within its jurisdiction during Michigan's fiscal year 2025.
State law determines how these funds are allocated: fifteen percent goes to municipalities and Indian tribes with licensed marijuana businesses; another fifteen percent goes to counties and Indian tribes with such businesses; thirty-five percent is directed to the School Aid Fund for K-12 education; and thirty-five percent supports the Michigan Transportation Fund for road repair and maintenance.
More information about adult-use marijuana tax distributions—including reports from previous fiscal years—can be found on the Treasury web page.
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