The state of Michigan has officially completed its first year of recreational cannabis sales, and reports state that it collected nearly $440 million in revenue.
Michigan’s year-one sales predictions were fairly accurate enough, ending with the state collecting approximately $73 million in excise and sales taxes, according to Crain’s Detroit Business. “The MRA successfully implemented the regulatory program for commercial adult-use marijuana leading to benefits for the industry, consumers and the citizens of the state,” Marijuana Regulatory Agency (MRA) Director Andrew Brisbo told Crain’s Detroit Business. “Over 450 licenses have been issued leading to over $450 million in sales, generating nearly $74 million in tax revenue. As the MRA continues its focus on equity, diversity, and inclusion, the next year will continue to provide opportunities for many businesses in the state to offer the safest possible access to marijuana for consumers.” Michigan’s projections for the next year show that sales numbers could possibly even double if the trend continues.
In fact, despite offering a limited number of dispensaries at launch in December 2019 and the concern of COVID-19’s effect on local businesses, recreational sales managed to increase every month. “As our state was hit with COVID-19 our members pivoted to curbside and delivery, developed safety and sanitation procedures and the MRA did an incredible job ensuring our facilities had all of the resources they needed to operate safely,” Michigan Cannabis Industry Association Director Robin Schneider told Mlive.com. “Many more municipalities including Detroit (have opted into the recreational market) and we’ve created good paying jobs across the state. Our members have really stepped up and made incredible contributions to families who are experiencing poverty this year through food drives, supporting local charities and several (personal protective equipment) contributions.”
Only a small percentage of local communities currently allow recreational cannabis, with a majority of dispensaries being located in Ann Arbor. The Detroit City Council only recently passed a law in late November to allow 75 cannabis stores to operate. However, if progress continues, Michigan recreational cannabis could collect the state as much as $1.9 billion to $2.4 billion by 2024.
