Cannabis Tax Revenue Grew by Almost 50%

Sales of legal marijuana in Michigan generated $266.2 million in tax revenue during the most recent fiscal year, surpassing the combined tax revenue from the sale of beer, wine, and liquor. A new report from the legislature’s nonpartisan House Fiscal Agency highlights the significant contribution of the marijuana industry to the state’s finances.

Tax revenue from sales of adult-use cannabis saw a significant surge of 49.1% in fiscal year 2022–23, concluding in October. This remarkable increase brought in an impressive $87.6 million in additional state revenue, surpassing the $178.6 million collected in the previous year. Such growth signifies the thriving market for cannabis sales, solidifying its positive impact on the economy over the past 12 months.

Among all the tax revenues analyzed in last week’s House Fiscal Agency report, cannabis revenue witnessed the most rapid growth and they still want more.

Michigan

Michigan Alcohol Tax 6%
There’s a 65% mark up on hard liquor not called a tax

Michigan Drug Dealer Tax 16%
(That’s what they call people who sold marijuana and threw them in prison)
The resulting legislation known as the Michigan Regulation and Taxation of Marihuana Act (MRTMA) imposes an excise tax of 10% on retail Marihuana sales in addition to a 6% sales tax. Both the Marihuana Retailers Excise (MRE) Tax of 10% and sales tax of 6% are administered by the Department of Treasury. LOL – Can’t beat em – take it over…

Is there an extra tax on alcohol in Michigan?
The 6% Michigan sales tax may be included in the price of alcoholic liquor sold to a customer for consumption on the licensed premises and is not required to be a separate charge itemized on the bill. for consumption on the licensed premises.

What is the markup on liquor in Michigan?
There’s a 65 percent markup on hard liquor in Michigan, which helps cover the MLCC’s costs and generates revenue for the state. Then, retailers such as restaurants and liquor stores are given a 17 percent discount on that liquor so they can turn a profit on sales.

Is there sales tax on food and drinks in Michigan?
Under Michigan law, food and nonalcoholic drinks are exempt from sales and use taxes, except for prepared products intended for immediate consumption.

How much is tax on $100 in Michigan?
If you make $100 a year living in the region of Michigan, USA, you will be taxed $11.90. That means that your net pay will be $88.10 per year, or $7.34 per month. Your average tax rate is 11.9% and your marginal tax rate is 11.9%.

USA

How much tax money is made from alcohol in the USA?
In 2022, revenue from alcohol tax in the United States amounted to 10.2 billion U.S. dollars.

How does marijuana affect tax revenue?
Through the end of 2022, states have reported a combined total of more than $15 billion in tax revenue from legal, adult-use cannabis sales. In 2022, legalization states generated more than $3.77 billion in cannabis tax revenue from adult-use sales.

Cannabis Tax Revenue
State By State

Tax Calculator – Alcohol Justice
Use this tool to estimate new annual revenue from an alcohol tax or fee increase in your state. … The Michigan beer excise tax was last changed in 1966 and has …