LANSING, MI — A new analysis from the Michigan Senate Fiscal Agency finds legalizing, taxing and regulating marijuana will generate even more revenue than projected by the Coalition to Regulate Marijuana Like Alcohol. The non-partisan Michigan Senate Fiscal Agency estimates that Proposal 1 would generate $105.6 million from sales tax and $182.3 million in excise tax in 2023.
The $287 million in combined sales and excise taxes is more than double the $130 million in annual tax revenue the campaign estimated in its analysis.
“Whether you take our conservative estimate or the state's more bullish estimate, the key thing is that voting yes on Proposal 1 will help the state collect significant and much-needed tax revenue that it is not receiving today,” said Coalition to Regulate Marijuana Like Alcohol spokesperson Josh Hovey.
Sales tax revenues primarily benefit the state School Aid Fund. Marijuana excise taxes will be divided 35 percent to roads, 35 percent to schools and 30 percent to local governments that allow marijuana businesses to operate.
The Senate Fiscal Agency analysis also cites a study finding Michigan spent roughly $91.4 million on enforcing marijuana possession in 2010, and the campaign’s analysis of FBI crime reporting data indicates the vast majority of the 20,000 marijuana possession arrests in the state are for a quarter ounce of marijuana or less.
“Proposal 1 isn’t just about generating hundreds of millions in new revenue for our state’s critical needs, it’s also about smart fiscal policy and ending the waste of million in tax dollars that are being used to enforce a failed law,” said Hovey.
For more information about the Coalition to Regulate Marijuana Like Alcohol, please visit RegulateMI.org.
Josh Hovey [email protected] C: 517-295-3496