State Representative Jennife Wortz has introduced a plan to temporarily stop new data center construction across Michigan. Local Municipalities are receiving a fresh round of tax money from Michigan’s marijuana sales, though the payments are slightly lower than last year.
According to new data from the Michigan Department of Treasury, the state is distributing over $93.7 million to local governments for the 2025 fiscal year. Each eligible city, village, and township receives about $54,100 for every licensed retail store within its borders.
In Hillsdale County, the total revenue is split among the county and three local areas:
Hillsdale County will receive 378,119 in 2025 marijuana tax revenue. That’s down significantly from $583,000 the previous year.
The City of Reading is slated to receive $162,350 for its 3 licensed retailers–That’s down from nearly $175,000 last year.
The Village of Camden has four licensed marijuana retailers, which generated $216,466 in local tax revenue. That’s a decrease from $232,000 last year.
Jefferson Township’s marijuana revenues are way down over the year. The township will receive just over $54,000 for one dispensary. That’s down from $174,000 the previous year, when three marijuana businesses operated in the township.
The payments have shifted as the market changes. In 2023, the payout was about $59,000 per store.
While the total number of shops in Michigan has grown, the amount of money collected per shop has started to slide. That’s because marijuana prices have dropped across the state, leading to lower tax collections overall.
Local leaders use the money for road repairs, parks, and law enforcement. While the checks are smaller this year, the revenue remains a major part of the budget, especially for smaller communities.
House Bills 5594 through 5596 would put a moratorium on building the facilities until April 1st, 2027.
Wortz said the goal is to give communities more time to understand the impact of data centers before they are built.
She said that many rural areas feel “invaded” by large development projects like data centers, solar farms, and wind turbines, often with little local input.
In a statement, Wortz said lawmakers “Can’t continue to allow Michigan’s farm ground and natural resources to be mindlessly destroyed.”
She emphasized concerns about land clearing, increased energy demand, and significant water usage associated with data centers.
The proposed “Data Center Regulation Act” would prevent new facilities from getting state or local permits during the moratorium. Wortz pointed to a recent court case where residents were unable to block the construction of a large data center, which she said highlights the need for communities to have more time to examine the projects. The bills have been sent to the House Committee on Government Operations.