Medical Cannabis Sales in Michigan Exceed $42 Million After Four Months

[dropcap class=”kp-dropcap”]A[/dropcap]ccording to the Michigan Department of Licensing and Regulation, medical cannabis sales in the state have exceeded $42 million in the four months since the first provisioning center opened on Nov. 1.

In the first month of sales with only a few licensed provisioning centers open, $7.1 million in cannabis sales were recorded with the state. The number grew to $11.9 million in January and dipped slightly in February to $11.2 million. Michigan’s numbers have already surpassed expectations, which is surprising due to Michigan only having 54 licensed provisioning centers in the state, with some only being open for a relatively short amount of time.

“That exceeds expectations that any of us had for the market,” said Rick Thompson, a board member of the Michigan chapter of the National Organization for the Reform of Marijuana Laws or NORML. “It’s a great sign since a significant part of the state isn’t serviced by a dispensary yet.”

According to the Michigan Cannabis Industry Association, around 50 businesses are still waiting to get a state license. Michigan is giving unlicensed businesses until the end of March to obtain a license or they will be forced to shutdown.

Michigan Gov.Gretchen Whitmer signed an executive order that seeks to abolish the state’s Medical Marihuana Licensing Board due to the perceived inadequacies of the board and its ability to process license applications.

In the four months of sales, Michigan sold 8,670 pounds of cannabis were sold, generating $2.3 million in tax revenue for the state from the six percent sales tax and $1.2 million from the three percent excise tax. The three percent excise tax rate ended last week, as state laws included language that would eliminate the tax rate 90 days after recreational cannabis became legal in the state. Both medical and recreational cannabis will still be subject to the six percent sales tax, and recreational cannabis will carry a 10 percent excise tax when it becomes available in 2020.