marijuana tax michigan

All You Need To Know About Marijuana Tax Michigan.


Michigan has stepped towards legalizing marijuana by implementing a marijuana tax Michigan on it. As of November 15, 2018, the Michigan Regulation and Taxation of Marihuana Act legalizes carrying up to 2.5 ounces of cannabis and some edibles for use at home or on private property. But does not allow smoking in public or outside designated areas. In addition, it does not legalize recreational sales at this time.

As for that tax, the Act directs 10% of the revenue from the state excise marijuana tax Michigan to be shared with local governments. Who forbore regulating legalized cannabis sales in their communities during December 2017. But no money can go to provide law enforcement services related to marijuana possession or usage until 2021.

What About Marijuana Taxes In Michigan?

Michigan was one of the first states to legalize medical marijuana in 2008. It’s been legal in some form since 2009. With a 2010 amendment to the Michigan Constitution, marijuana use is also legal for adults 21 and over. From 2014 to 2016, Michigan became the 10th state to pass a medical marijuana law allowing licensed dispensaries with reciprocity agreements with neighboring states; but before 2016, recreational use was not allowed.

Since then, Michigan has been at the forefront of marijuana reform, with some of the most progressive laws in the US. The state legalized recreational use in 2018 and collected more than $30 million in taxes. It also legalized canna-oil production on a limited basis.

So, after 2016, the recreational use of marijuana is still illegal in Michigan. But the state has a robust medical marijuana program.

How Is This Tax Different Than Other States’ Taxes?

Michigan’s special 10% excise marijuana tax Michigan is a percentage of the wholesale sales price for taxable marijuana instead of a flat tax. So In Arizona and California, which have similar laws to Michigan’s, cannabis is taxed at 15%. In contrast, Nevada and Colorado, have similar laws to Michigan’s. It’s taxed at 15% of the total wholesale price.

In Oregon and Washington states, which have similar laws to Michigan’s, cannabis is taxed at 10%; whereas in Idaho and Maine, which have similar laws to Michigan’s; cannabis is taxed at 10% of the total wholesale price. On top of that, Michigan has an additional 6% state sales marijuana tax Michigan.

What About Separate Recreational and Medical Marijuana Tax Michigan?

In March 2017, the Senate Fiscal Agency forecasted a combined $100 million in revenue from a 10% recreational tax and a 10% medical marijuana tax Michigan. That was before the laws to legalise recreational use had passed. As for the medical marijuana tax, passed as part of 2017’s bill to set up the recreational market, it only applies to 3% of all cannabis sales in Michigan at all levels. In addition, the excise tax is applied to just 2.5 ounces or less of cannabis flower per individual consumer, and 5 grams or less of non-edible marijuana concentrates per individual consumer.

What’s The Difference Between Medical and Recreational Marijuana Taxes In Michigan?

The 10% recreational excise tax applies to recreational cannabis and medical marijuana sold by the same store, whereas the 3% medical marijuana tax is applied to separately purchased medical marijuana.

Some stores in Michigan will have both a medical and a recreational side, but others will only operate one side or the other. In that case, medical and recreational purchases must occur in different rooms—not adjoining ones. The register should reflect which marijuana tax Michigan is collecting for which products.

How Is This marijuana tax michigan Different From Other States’ Policies?

Michigan is the only state giving sole responsibility for regulating recreational sales to local governments, which are obliged to follow the state’s rules and regulations. By contrast, many other states have decided how recreational sales should be regulated at the state level. Leaving local government discretion wide open. That includes Illinois (no recreational use until 2020), and Connecticut (no recreational use until July 2018). Delaware (no recreational use until July 1, 2018), Maryland (no retail sales of cannabis in 2019), and New Jersey (no retail sales of cannabis in 2021).

Why Do Some States Allow Recreational Marijuana?

Many states have legalized recreational marijuana to help fund education or hold marijuana crimes at low levels. For example, California had a $1.1 billion budget deficit in 2016, and 10% of the revenue from a 10% excise tax on cannabis is predicted by Governor Jerry Brown to cover half of the state’s needs for 2017-2020. Some other states have legalized recreational use to protect recreational users from state penalties for possession and federal prosecution. For example, New Hampshire’s law specifically prevents fines or charges for personal possession of up to 2 1/2 ounces of marijuana. At the same time, they’re not protected from federal prosecution. They are not subject to any state penalties either.

What About Marijuana On College Campuses In Michigan?

The law allows college students to possess and use marijuana privately on campus. However, the law doesn’t allow them to smoke it on campus or allow cannabis consumption in public places.

Also, the designated areas are restricted to those existing for medical purposes and only for the user’s medical needs; marijuana cannot be smoked. Michigan State University, Wayne State College, Eastern Michigan University. Western Michigan University do not regulate the on-campus consumption of recreational marijuana by college students.

What About Cities And Counties That Oppose Legalization?

Local jurisdictions can ban or limit recreational marijuana establishments, but they must pay up if they wish. To pass the law, Michigan passed a new law that any local property tax revenue associated with retail sales of cannabis will be held in escrow by the state treasury until that municipality has collected $5 million in retail sales tax revenue. If a local government later votes to allow cannabis businesses. In that case, it will get 90% of the property marijuana tax michigan revenue and 70% of the sales tax revenue for two years. After which it would revert to 60% and 40%.


To summarise, Michigan’s law legalizing recreational use will take effect on December 6, 2017. However, local jurisdictions that want to create rules or ban pot sales can still do so. Then they’ll have until December 6, 2018, to decide whether to opt in or out of the program.

While many other states are holding off making decisions on marijuana legalization until after their legal cannabis industries are more mature. Michigan is forging ahead (especially with its medical marijuana market). While it’s true that other states have acted based on medical necessity (Arizona and California have similar laws). Michigan’s law is a model for how others should follow.

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