Marijuana Wholesale Tax May Impact Local Governments

A proposed tax on marijuana in Michigan’s proposed budget could impact revenues for county and local governments. 
The newly negotiated state budget, which was announced by lawmakers last week, includes a proposed 24% tax on marijuana to fund road work in the state.
If the wholesale tax passes in the Senate, it would initially be charged to growers and wholesalers.
However, the increase would likely be passed down to customers, which may impact sales. 
Counties and local governments that permit marijuana shops to operate receive tax revenue from those operations. 
Hillsdale County currently receives about $400,000 annually in marijuana tax revenue. The village of Camden received more than $230,000 in 2024. Jefferson Township and the City of Reading each received just over $170,000 in marijuana tax revenue last year.

 

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