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Medical marijuana sales are generating a tax windfall for Michigan

Credit steve carmody / Michigan Radio
/
Michigan Radio

State regulators are projecting an $18.2 million sales tax windfall from sales of medical marijuana this fiscal year.

7,002 pounds of medical marijuana products have been sold since state monitoring began marijuana sales in October, tallying $33,367,841.

The money raised will go to the School Aid Fund and local municipalities.

In addition to the sales tax, $112,000 in excise taxes have also been collected from licensed medical marijuana facilities.   

Only licensed provisioning centers are subject to the 3% excise tax.  All sales of tangible personal property – even illegal sales – are subject to sales tax unless an exemption applies. Note that the 3% excise tax is repealed effective March 6, 2019. 

Those dispensaries operating under emergency rules were required to pay sales tax. 

Copyright 2019 Michigan Radio

Steve Carmody has been a reporter for Michigan Radio since 2005. Steve previously worked at public radio and television stations in Florida, Oklahoma and Kentucky, and also has extensive experience in commercial broadcasting. During his two and a half decades in broadcasting, Steve has won numerous awards, including accolades from the Associated Press and Radio and Television News Directors Association. Away from the broadcast booth, Steve is an avid reader and movie fanatic. Q&A