Information about marijuana excise tax


  • The state’s current 3% excise tax on medical marijuana will go away and be replaced by a new 10% excise tax on each marijuana retailer and microbusiness for the sale of recreational marijuana (i.e. tax will no longer be collected on the sale of medical marijuana).


  • The proceeds from the 10% excise tax will go directly into a new “marijuana regulation fund” (i.e. it shall not lapse into the state’s general fund).


  • The state shall first expend monies collected in this fund to cover their costs of implementation, administration and enforcement of the new law. These costs are unknown at this time.


  • Once those costs are covered, until the year 2022 or for at least 2 years, the state shall spend $20 million annually out of this fund to one or more clinical trials researching the effects of marijuana in treating medical conditions of US veterans.


  • Thereafter, any remaining funds from the excise tax shall be distributed as follows:


o   15% to municipalities in which marijuana retail stores are located in proportion to the number of retail stores located in the municipality. For a small community like Hudsonville, these dollars are expected to be marginal at best.


o   15% to counties in which marijuana retail stores are located in proportion to the number of retail stored located within the county.


o   35% to the school aid fund to be used for K-12 education. Our local schools will receive these funds regardless of whether our city opts out or not.


o   35% to the Michigan transportation fund to be used for the repair and maintenance of roads and bridges. Our city will receive these funds through Act 51 distribution regardless of whether we opt out or not.