Although most opponents of cannabis legalization posited that allowing access to cannabis would boost drug abuse and crime rates among the youth, proponents focused on all the good a lucrative cannabis market could do. Aside from expunging the records of those with prior nonviolent, cannabis-related convictions, a cannabis market would provide plenty of tax revenue for states to carry out social justice initiatives, which is what Michigan is doing.
Thanks to the Michigan Regulation and Taxation of Marijuana Act, more than 100 communities in the state will receive close to $10 million from the Michigan Department of Treasury. A news release from the state’s cannabis regulatory agency says that, starting last week, it began sending around $28,000 to 38 cities, 38 counties, 21 townships, and 7 villages for every licensed recreational cannabis retail outlet and micro business.
With 22 dispensaries within its jurisdiction, Washtenaw County is poised to collect more than $616,000, more than any other county. Ann Arbor, on the other hand, will receive more than $476,000 thanks to its 17 dispensaries, the state says. Michigan reported cannabis sales in excess of $341 million in 2020, collecting more than $31 million from the 10% excise tax. With an extra $14.7 million collected from fees, the state had nearly $46 million to disburse to municipalities and counties with recreational cannabis outlets.
Of the nearly $46 million, close to $10 million will be disbursed to communities, around $11.6 million will go to the School Aid Fund for K-12 education, another $11.6 million will be sent to the Michigan Transportation Fund, and the remaining $12.5 will be used to cover administration and startup costs. According to Andrew Brisbo, the Marijuana Regulatory agency’s executive director, the team at the agency did a “tremendous job” getting the state’s recreational cannabis program up and running efficiently.
Beefing up local governments’ budgets based on how much retail recreational cannabis outlets are within their jurisdictions will have a major impact, he says, and it shows just how lucrative the state’s cannabis industry is. At the moment, less than 100 of the 1,764 communities in Michigan allow recreational cannabis sales. Although the city of Detroit also doesn’t allow recreational cannabis outlets within its borders, it began accepting applications in January.
Michigan legalized recreational marijuana in late 2018 for adults 21 years and older, becoming the first state in the Midwest to allow adult-use cannabis within its borders.
The legalization of cannabis in different jurisdictions around the country has created room for other companies to thrive. For example, RYAH Group Inc. is making remote health and data analytics a key feature of cannabis-based medicine. This firm has a dose-measuring device that can be controlled remotely so that doctors can work with their patients seamlessly for better outcomes.
NOTE TO INVESTORS: The latest news and updates relating to RYAH Group Inc. are available in the company’s newsroom at https://cnw.fm/RYAH
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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