Medical Marijuana Potentially Lucrative for State

(Originally published Oct. 19, 2016) LANSING, MI — New medical marijuana regulations will be put into place in December, and some are projecting millions of dollars in state revenue with the changes; some analysts estimate the number could be more than $63 million a year, according to the Detroit Free Press. The new regulations require a 3 percent excise tax on dispensaries’ gross sales receipts.

Based on just over 200,000 registered medical marijuana patients in the fiscal year 2016, that could yield $21.3 million annually in revenue to the state, according to the Senate Fiscal Agency. If prices and buying habits follow the pattern of Colorado, the agency estimated Michigan’s medical marijuana market could exceed $711 million.

Additional revenue is expected if marijuana retail sales are subject to Michigan’s 6 percent sales tax, which would generate an estimated$42.7 million, and with the collection of state and local licensing fees, the fiscal agency wrote.

» For more on this, go to the Detroit Free Press.

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