City’s hope for a new tax stream is going up in smoke

Hamtramck’s elected officials continue to go down the wrong path when it comes to allowing the sale and production of recreational and medical marijuana.
At the last city council meeting, a bare majority once again took steps to prevent this city from experiencing new tax revenue streams.
Councilmembers Anam Miah, Saad Almasmari, Abu Musa and Fadel Al-Marsoumi voted to have the city attorney draw up a resolution that will prevent sales of recreational marijuana.
Cities that don’t want such sales must officially “opt out.” If a city doesn’t take that step, marijuana sales outlets could technically operate legally.
Those opposed to the sales say Hamtramck is too small and that marijuana sales outlets would result in an increase of crime. Also, they fear that children could get their hands on it.
This is nothing more than fearmongering.
Will there be an occasional crime at a marijuana sales outlet? Yes, just as every now and then we have bank robberies and liquor store hold-ups.
Should we ban banks and party stores? Of course not.
With GM likely closing its Poletown Plant, Hamtramck will lose a substantial amount of revenue – some $800,000 paid each year in lieu of property taxes.
Hamtramck simply can’t afford to be that picky about what kind of businesses can operate here.
True, there are a number of communities opting out. Most of them are affluent communities.
But blue-collar towns like Hazel Park and Madison Heights are on the path to welcoming marijuana sales outlets. Pontiac is poised to become a significant marijuana hub.
Ann Arbor, which decriminalized possessing a small amount of marijuana to a $25 fine decades ago, is one of the rare affluent communities allowing outlets and growth facilities.
Ann Arbor is also home to one of country’s best colleges, the University of Ann Arbor. The town obviously attracts some very smart people to live there and run the government.
Hamtramck officials could take a lesson from them.

Feb. 8m 2019

5 Responses to City’s hope for a new tax stream is going up in smoke

  1. Nasr Hussain

    February 8, 2019 at 4:09 pm

    Are there any financial studies showing a net gain from allowing Marijuana dispensaries? or is this just wishful thinking of some city officials.

    Same thing was said about COBRA unit that’s now costing our city hundred of thousands of dollars in court cases settlements.

  2. Nasr

    February 9, 2019 at 1:49 pm

    “By the time Michigan’s recreational marijuana market is fully fleshed out, $134.5 million in tax revenues will be flowing into the state’s coffers annually.”

    “The first $20 million in tax revenues for each of the first two years would go to research into the effects of marijuana use on different health ailments, including PTSD in veterans. Of the remainder, 35 percent would go toward roads, 35 percent to schools and 30 percent to the counties and communities that allowed marijuana businesses in their towns.”

    https://www.freep.com/story/news/marijuana/2018/10/01/estimated-tax-haul-marijuana-sales-would-134-million-annually/1489304002/

    Doing the rough calculations, Hamtramck will end up with measly $100,000 per year.
    Is it worth it?

    Definitely not.

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