Local governments across Michigan are set to receive $58,228 for every licensed marijuana business operating within their borders, thanks to revenue from the state’s 10% cannabis excise tax. Although this year’s payout is slightly lower than last year’s, officials say the funds remain a valuable source of income, helping to stabilize budgets, fund infrastructure projects, and support community development.
The excise tax revenue, which also supports state education and transportation funds, offers municipalities the freedom to allocate the money as they see fit. This flexibility allows local governments to prioritize needs ranging from road repairs to facility upgrades.
Alpena County Leads the Pack
This year’s biggest winner is Alpena County, securing $232,914 from its four licensed marijuana businesses. County Administrator Jesse Osmer highlighted the importance of this funding, noting that it strengthens the county’s financial foundation and enables projects that would otherwise be out of reach.
“As we enter the third year of receiving these tax dollars, the board of commissioners can now better anticipate where they’ll be designated,” Osmer said. “Most of the money will likely continue to support the general fund, with any surplus directed toward capital improvements or the maintenance of buildings and equipment.”
The city of Alpena alone will receive $174,685 for three cannabis operations within its limits. Nearby Sanborn Townshipwill get $58,685 for hosting one licensed business.
Neighboring Counties See Significant Gains
Other counties are also benefiting from Michigan’s thriving cannabis market:
- Alcona County will receive $174,685 for its three marijuana businesses, all located in Harrisville, which will also receive an identical amount.
- Presque Isle County is set to gain $116,457 for two licensed cannabis businesses, with Rogers Township and Onaway each getting $58,228.
- Montmorency County and Briley Township will also collect $58,228 apiece for hosting one cannabis shop each.
Statewide Impact Reaches Schools and Transportation
Beyond local governments, the cannabis excise tax is making a broader impact across Michigan. The state allocated $116 million each to the School Aid Fund for K-12 education and the Michigan Transportation Fund, boosting resources for schools and infrastructure projects.
Brian Hanna, executive director of Michigan’s Cannabis Regulatory Agency, emphasized the positive economic ripple effect of the state’s cannabis industry:
“Municipalities, counties, and tribes benefit in many ways from local cannabis businesses, including good-paying jobs, community involvement, and increased revenues for important priorities,” Hanna stated. “This tax revenue directly supports the communities where our licensees work and live.”
More Cannabis Industry Updates
For more insights on the evolving cannabis landscape across the U.S., check out our latest reports. Learn about New York’s ongoing efforts to expand its legal cannabis market in our New York Cannabis Industry Progress Report. Additionally, discover how Nevada is shaping its cannabis policies with new research from the UNLV Cannabis Policy Institute.
