With recreational marijuana now on sale in Michigan, many are wondering what’s happening with the taxes it’s generating.
David Harns, a representative of the Marijuana Regulatory Agency spoke with TV5 about the first two years of collection.
“The first $20 million annually will be sent to one or more clinical trials that are approved by the FDA,” Harns said.
Harns said the studies will look into the treatment of medical conditions for U.S. service veterans focused on preventing suicide.
“The first $10 million had to go back to pay back the loan that was given from the general fund from the legislature,” Harns said.
The loan was taken from the general fund to help with start-up and for agency costs in the future.
Once that money is accounted for, Harns said the rest will be divided into four ways.
“Fifteen percent will go to municipalities where marijuana stores are located, the other 15 percent will go to counties where retail stores are located,” Harns said.
He said the remaining amount will be split between schools, roads, and infrastructure.
“It’s split evenly between the school aid fund to be used for K-12 education and the Michigan Transportation Fund to be used for the repair of maintenance of roads and bridges,” Harns said.
The destinations for this money was voted on in 2018, making it state law.
According to Harns, there are 26 licensed marijuana retailers in the state so far. He said that in just five weeks they’ve made more than $8 million in total audit sales.