A new state tax on marijuana, intended to fund road repairs, could reduce the tax revenues directly received by Hillsdale County and other local governments.
At the end of September, the Michigan Legislature agreed to a 24% wholesale tax on marijuana as part of the state’s budget.
Marijuana growers and wholesalers would initially pay this tax, but it’s expected that the cost will be passed on to consumers, potentially leading to fewer sales.
Local governments that allow marijuana businesses to operate collect tax revenue from the sales.
Hillsdale County collected about $400,000 in marijuana tax revenue last year. The village of Camden received over $230,000, while Jefferson Township and the City of Reading each got just over $170,000.
A Michigan Court of Claims judge recently ruled against a request to block the tax, allowing it to take effect on January 1st.
However, leaders in the marijuana industry are continuing their legal challenges to the tax.
