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Over $42.2 million paid to Michigan municipalities from cannabis dispensaries

Cannabis in a Jar
Posted at 5:56 PM, Apr 20, 2022
and last updated 2022-04-20 19:09:15-04

PORTAGE, Mich. — 4/20, as cannabis enthusiasts call it, marks the busiest day of the year for cannabis dispensaries.

Doja Dispensary in Portage told FOX 17 there was a steady line all day long starting early in the morning when they opened. The owner said he expected to see over 1,000 people go through their doors.

It's a day they have to prepare for, almost like Black Friday for other retail stores.

Employees are given assigned positions, a parking plan is put in place and deals are quick and easily understandable to allow as many people through the door as they can.

At Doja Dispensary and their sister store Lake Effects in Portage, they also have special deals for people wanting to show their pride in freedom of use in Michigan.

"It’s a great cannabis-enthusiast day. We have $5 grams, $4 grams, $3 grams, $50 ounces, $100 ounces, 10 for 100 carts and wax, all kinds of edible deals, 50% off storewide pretty much. You can’t beat it. I guarantee," said Co-Owner of Doja and Lake Effect Dispensaries Jevin Weyenberg.

Their sister store, Lake Effects, said as of noon on 4/20 they had already seen 1,000 people through the door.

Both locations are doing pre-orders as well as delivery.

Tax Revenue from Michigan Cannabis Dispensaries

The tax revenue from Michigan cannabis dispensaries has a significant economic impact on the local economy.

Last year alone, over $42.2 million was paid out to cities, townships and counties as part of the Michigan Regulation and Taxation of Marijuana Act.

The information is outlined in the Michigan Treasury Department's: Adult-Use Marijuana Payments to be Distributed to Michigan Municipalities, Counties report.

In Portage, there are a total of five dispensaries, including Doja and Lake Effect dispensaries.

From last year's revenue from the dispensaries, the city of Portage received $282,267.20 from the "Marihuana Regulation Fund," according to Michigan's treasury department.

In West Michigan, the four largest counties received a total of $4,088,194.24 from the fund.

Here is the breakdown:

  • Kent County: $1,072,615.36 with 19 licenses
  • Muskegon County: $677,441.28 with 12 licenses
  • Calhoun County: $1,185,522.24 with 21 licenses
  • Kalamazoo County: $1,072,615.36 with 19 licenses

Portage dispensaries Doja and Lake Effect paid into that.

"There is an excise tax of 10% that comes back to cities and townships. There was a substantial amount of revenue that was given back to the city of Portage as well as the city of Kalamazoo from the cannabis industry, and we are proud of that. We hope the city makes good decisions on how they spend that," said Co-Owner of Doja and Lake Effect Dispensaries Jevin Weyenberg.

Grand Rapids received the most money due to having the most licenses of any West Michigan city.

Calhoun County received the most out of the four counties.

The state of Michigan has a total of 374 licenses.

READ MORE: Recreational marijuana sales in New Jersey slated to begin April 21

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