Marijuana tax shares hit new high for local governments

Don Reid, Coldwater Daily Reporter
·2 min read

For the second year in a row, Coldwater and Quincy received increased marijuana excise tax revenues from the $87 million distributed among the 269 municipalities that allow these businesses, the Michigan Department of Treasury said Thursday. 

Branch County received $827,208 from the 14 retail licenses in the county. The county anticipated only $450,000, according to its budget.

The new marijuana grow and retail sales facility on Garfield Street will not provide excise tax revenues to Coldwater and then county until next year.
The new marijuana grow and retail sales facility on Garfield Street will not provide excise tax revenues to Coldwater and then county until next year.

Branch County placed its revenue in the general fund after suggestions it pledge the marijuana money to help cover the $989,560 allocated for six new road patrol deputies.

There were 737 retail licensees operating in the state's cities, villages, and townships during the 2023 fiscal year.

The $87 million collected is about a 46% increase from the $59.5 million in tax revenue collected for the 2022 fiscal year.

Quincy Village received $177,259 for the three authorized licenses open in the village. That money goes into the village general fund.

Coldwater received $649,949 from 11 open establishments in 2023. There are two more expected to add tax revenue next year from 2024 sales. 

Craft Leaf will open retail sales at the Garfield Street grow operation this year. That is the only licensed sales location outside the C-4 district around I-69.

Another retail marijuana sales location is under construction on Michigan Avenue, south of U.S. 12.

The city of Coldwater pledged marijuana tax funds to redevelop Rotary Park along both sides of the Coldwater River. With the new tax revenue, there is $1.385 million to start the work this summer.

Complete tax distriubtion list Michigan Department of Treasury marijuana tax distribution 2023

Next year, California Township will receive a share for the Fremont Road California Michigan Cannabis Company, which opened last month.

Michigan pools the state excise tax from all retail sales and divides taxes evenly among counties and municipalities by licensed locations.

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Each 2023 share was just over $59,000 per license.

More than $100 million was sent to the School Aid Fund for K-12 education, and another $100 million went to the Michigan Transportation Fund.

-- Contact Don Reid: dReid@Gannett.com 

This article originally appeared on Coldwater Daily Reporter: Michigan marijuana tax shares increase from 2023 retail sales