The state of Michigan is getting closer and closer to beginning recreational marijuana sales and it could mean a lot of money is on the way.
According to Michigan budget planners, the state stands to gain more than $1B as recreational marijuana shops open
The state just rolled-out of the first licensed recreational marijuana businesses this week. As of Nov. 25, Michigan has issued a total of eight recreational licenses, three of them for retail sales.
“Everything in this space is new, so I don’t know if anyone can sit back and say it was easily predicted how we’d end up where we are but I think everyone is pleasantly surprised,” Marijuana Regulatory Agency Director Andrew Brisbo said in November.
The planners expect Michigan to become a nearly $1 billion-per-year industry beginning in fiscal year 2021, which runs from Oct. 1, 2021 through Sept. 30, 2022.
Revenues are projected to increase rapidly to $1.43 billion beginning in 2022 and eclipse $1.5 billion by the following year.
“The recreational industry, once fully implemented, will have a significant impact on Michigan’s economy, with hundreds of millions of dollars in tax revenue flowing into state and local governments,” said Michigan Cannabis Industry Association Director Robin Schnedier.
“We’ve already begun to see waves of hiring by cannabis businesses looking to fill these good-paying jobs, which will have a major impact on communities as these workers have money to spend on goods and services at their local small businesses.”
“I’ve been somewhat surprised with municipal participation,” Brisbo said. “I think we always assumed there would be a lot of municipal opt-outs, based on the way the ballot initiative is written, but I think it’s been somewhat surprising that even municipalities that allow for medicinal use haven’t necessarily been allowing for the adult use side of things.
“I think we’re starting to see municipalities get through those conversations and start to move ahead.”
According to Brisbo, there will be enough tax revenue made in the first nine months of the recreational market’s existence to cover the almost $10 million general-fund loan used to implement the program.
“I think that’s still possible in … 2020, depending on how quickly things roll out and how quickly sales come to fruition,” Brisbo said.