Michigan cannabis tax man cometh and giveth

💰 MICHIGAN
Cannabis excise tax checks are in the mail

What’s happening: Last week, the Michigan Department of Treasury announced the distribution of more than $87 million as part of the Michigan Regulation and Taxation of Marijuana Act. 

The details: When Michigan legalized adult-use cannabis, the state set up the Marihuana [sic] Regulation Fund to distribute cannabis excise taxes collected as part of the program. Each county, city, and town that hosts a dispensary or cannabis microbusiness was granted $59,000 per location. So the bounty was made official last week via a press release from the Department of Treasury. 

Plus schools and roads: This year in Michigan, more than $290.3 million was distributed. In addition to the $87+ million distributed to counties, cities, and towns, $101.6 million was distributed to the School Aid Fund for K-12 education and $101.6 million was distributed to the Michigan Transportation Fund.

Why it matters: As states continue to legalize adult-use cannabis, issues around tax revenues and distribution of that tax revenue also take center stage. We have seen a number of states start to brag about the overall tax dollars collected while at the same time touting the overall dollars and usage of those tax dollars.

Last month, we wrote about Arizona’s distribution of tax fund in Cannabis taxes put to use in Arizona. 

What’s next: We anticipate that jurisdictions will continue to report out their tax allocations and distributions which will provide more proof points around the benefits of cannabis legalization. 

-JR

North Carolinians will see the first adult-use dispensary opening on 4/20 on Eastern Band of Cherokee Indians tribal land following a vote last September approving adult-use sales. 

🍁 CANNABIS > BEER
New Canadian study suggests beer sales down with introduction of adult-use

Driving the news: In a country known for their love of beer (think Bob and Doug McKenzie, you hoser), cannabis appears to be taking a bite out of beer sales and consumption in Canada.

Wait, what? That’s right, according to a study in the journal Drug and Alcohol Dependence and reported on by Marijuana Moment, cannabis legalization has been associated with a decline in beer sales. And that’s not all, taxes on cannabis have outpaced those on wine and beer, as previously reported in MJ Biz Daily. 

What gives: Well, it could be the substitution effect – consumers swapping out beer and replacing it with cannabis. That’s certainly part of it. But alcohol consumption is changing with younger generations, according to Civic Science. 

While the frequency of alcohol consumption has not changed much, the quantity consumed has gone down, according research: “Although young Millennials report more regular drinking than older adults (44% drink at least weekly), the data indicate they are overall the most likely to limit the amount they drink.”

Why it matters: Attitude and behaviors are changing when it comes to alcohol and cannabis. Identifying and capitalizing on these trends is critical for the cannabis industry, regulators, public health officials, and tax collectors alike. 

-JR

Florida medical marijuana operators form a trade association to promote pot | WUSF

China reportedly linked to millions of dollars in criminal marijuana farms | Fox Business

Cronos group reported their earnings this week, highlighted by cutting their losses to $74.5 million dollars from 2022 to 2023 with net revenue in Canada increasing 20% in Q4 2023 compared to Q4 2022.

Custom Cones is promoting a job for a cannabis content creator to ‘get paid to smoke weed’: