Michigan residents rolled out en masse and showed that recreational cannabis is a highly desired product as soon as legal sales began this month. The total number of sales revenue generated in the first eight days of December came to $1,629,007 from only eight cannabis dispensary locations. It is reported that three out of the eight retail cannabis shops in Michigan sold out or were reduced to limited quantities of cannabis products. The total tax revenue generated from the cannabis sales came in at $162,900 from the state’s 10% excise tax and $107,514 from the Michigan’s sales tax.
Under the ballot initiative that a majority of Michigan residents voted for and passed in 2018, the first $20 million from Michigan’s 10% excise tax will go towards cannabis research. The $20 million in excise tax revenue will go specifically towards cannabis research on the ability of cannabis to treat ailments like post-traumatic stress disorder (PTSD). Cities and towns who allow for cannabis businesses will receive the rest of the excise tax to provide funds for school aid, and the transportation fund for public road improvement. The House Fiscal Agency projects state excise tax totals of $97.5 million in 2020 and $163 million in 2023. State sales tax projections for 2020 are $59 million and $98 million for 2023. The funds for the state’s 6% sales tax on cannabis are set for school aid fund, revenue-sharing payment to numerous forms of residential communities, and Michigan’s general fund.
Greenstone, a cannabis dispensary located in Ann Arbor, Michigan, had its store sell out of dried cannabis flower for several days in a row. Two other cannabis dispensaries, Michigan Supply was reduced to a limited amount of dried flower and Lit Provisioning Centers entirely sold out of cannabis products after two days of sales from 750 customers who each spent an average of $103.
Doug Hellyar, president and chief operating officer of Lume Cannabis Company, owner of Lit Provisioning Centers, stated: “We are humbled that our first weekend of adult-use sales at Lit Provisioning Centers in Evart was so well- received. People traveled from across the state, braved the cold and stood in line for hours to be among the first to purchase recreational marijuana in Northern Michigan.”
The state has provided 21 licenses to those who applied for a recreational cannabis business license on November 1st and an additional 73 licenses have been pre-qualified.
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