Recreational marijuana sales in Michigan totaled $341 million in 2020

More than 100 local governments are getting a share of $10 million in tax revenue
Michigan marijuana sales
Photo credit Getty Images - FILE

(WWJ) Michigan made a lot of money from the legal cannabis business in 2020, according to new figures released by the state.

More than 100 local governments are getting a share of $10 million collected by the state from taxing recreational marijuana sales — as a part of the Michigan Regulation and Taxation of Marijuana Act — which totaled more than $341 million last year.

This week, 38 cities, seven villages, 21 townships and 38 counties began receiving payments from the Marihuana Regulation Fund for every licensed retail store and microbusiness within its jurisdiction. For the state’s 2020 fiscal year, this means each eligible municipality and county will receive around $28,000 for every licensed retail store or microbusiness.

“The revenue generated from marijuana taxes and fees is important to our local governments,” State Treasurer Rachael Eubanks said. “In this extraordinary time, our staff is working to get those payments to impacted municipalities and counties. Every dollar helps right now.”

For the state of Michigan’s 2020 fiscal year, more than $31 million was collected from the 10% adult-use marijuana excise tax. Combined with fees, there was a total of $45.7 million available for distribution from the fund.

State law outlines how much is distributed from the Marihuana Regulation Fund.

Aside from the nearly $10 million in disbursements to municipalities and counties, around $11.6 million will be sent to the School Aid Fund for K-12 education and another $11.6 million to the Michigan Transportation Fund, upon appropriation. The remaining $12.5 million amount will be used toward start-up and administrative costs.

“The team at the Marijuana Regulatory Agency did a tremendous job getting the adult-use licensing program established and operating efficiently,” said MRA Executive Director Andrew Brisbo. “Infusing over $28,000 per retailer and microbusiness into local government budgets across the state is very impactful and shows how strong and successful the industry is becoming.”

After Michigan voters approved the legalization of marijuana in November 2018, the state has slowly eased into commercial sales — with some municipalities opting out, which is allowed under the law.

For more information about adult-use marijuana tax distributions – including a breakdown of how much municipalities and counties received – go to To learn more about Michigan’s adult-use marijuana industry, go to