Medical marijuana sales are generating a tax windfall for Michigan
State regulators are projecting an $18.2 million sales tax windfall from sales of medical marijuana this fiscal year.
7,002 pounds of medical marijuana products have been sold since state monitoring began marijuana sales in October, tallying $33,367,841.
The money raised will go to the School Aid Fund and local municipalities.
In addition to the sales tax, $112,000 in excise taxes have also been collected from licensed medical marijuana facilities.
Only licensed provisioning centers are subject to the 3% excise tax. All sales of tangible personal property – even illegal sales – are subject to sales tax unless an exemption applies. Note that the 3% excise tax is repealed effective March 6, 2019.
Those dispensaries operating under emergency rules were required to pay sales tax.