On Thursday, the Michigan Dept. of Treasury it would be issuing almost $10 million to local communities and municipalities based on revenue generated by local businesses selling marijuana since it became legal in the state for adult use recreationally.
That $10 million comes from the 10% state excise tax charged on the sale of recreational marijuana.
Several government entities in Berrien County saw benefits: in Berrien County, where there are five licenses, the county is receiving $140,006,60. In the City of Niles, where there are two licenses, the city is receiving $56,002.64. In the City of Buchanan where there are three licenses, the payout is $84,003.96.
Rich Murphy, the City of Buchanan's economic development director, said the payout came as a pleasant surprise.
“I think there’s some raised eyebrows like, ‘Wow, we actually received revenue sharing from the state.,’" he said. "It’s a good surprise, you know, municipalities are struggling with less resources.”
Murphy said city officials are still working out how to spend the money, but he said they hope to be guided by conversations with the community.
“How can we put this money back into Buchanan?" Murphy said. "Quality of life and economic benefits for our community – I would hope that’s what it could be used for.”
Van Buren County also has five licenses. As a result, the county will receive $140,006.60. Within Van Buren County, the City of Hartford has one license and is receiving $28,001.32. The City of Bangor has two licenses and is getting $56,002.64. Almena Twp. and the Village of Breedsville each have one license, and will each receive $28,001.32.
The Michigan Regulation and Taxation of Marihuana Actstates that funds collected from the 10% excise tax will first pay for the implementation and enforcement of the act. Fifteen percent of any surplus funds will be returned to counties with licensed retailers, and 15% will be returned to municipalities. Thirty-five percent each will go to school aid funds for K-12 education and to the Michigan transportation fund for road and bridge repair.
To see a list of all the payouts,click here.
