Michigan to reap more than $350 million in recreational marijuana tax revenue in 2021, report says

A recent study of marijuana-related taxes across the nation predicts Michigan will collect nearly $350 million in connection to recreational marijuana sales in 2021.

That figure combines about $80 million in sales tax and $270 million in excise tax, calculated by the Marijuana Policy Project using publicly available sales data through November.

The first licensed recreational marijuana shops opened in Michigan in December 2019. There are now more than 400 across the state.

Since January, total Michigan marijuana revenue — medical and recreational combined — has surged 50%, increasing from about $110 million per month to $153 million in November, the most recent month for which statistical data is available from the Marijuana Regulatory Agency (MRA).

That puts the market on pace to reach in excess of $1.8 billion in sales over then next year. Monthly revenue hit a record high in July, the only month this year that eclipsed the $2 billion-per-year pace with $171 in total monthly marijuana revenue. There were about $153 billion in total November sales.

Recreational sales reached $341 million in 2020 and were at about $1.6 billion as of November. The state captured $31 million from the 10% recreational marijuana excise tax in 2020, in addition to about $15 million in application and other licensing fees, not including the 6% in sales taxes.

But the ceiling is a long way up, Marijuana Regulatory Agency Director Andrew Brisbo has said, predicting the market will grow to nearly 4 million customers spending $3 billion annually by about 2024.

Brisbo in December said the latest figures indicate Michigan’s marijuana industry directly supports nearly 33,000 jobs.

“We’ve seen a lot of our members, even small mom-and-pop retailers, expanding into new areas,” said Robin Schneider, director of the Michigan Cannabis Industry Association (MCIA), the state’s largest marijuana trade organization. “We’ve also seen a number of our retail members open their own license grows and processes this year and become vertically integrated. So, we’ve definitely seen a ton of expansion this year and expect to see that trend continue next year.”


Source : MLIVE