Projected marijuana retail taxes expected to be a windfall

The collection of taxes from marijuana facilities is projected to bring in about $200 million in taxes throughout the state, and Hamtramck is slated to receive a heft portion. Just how much money will be coming this way is not known yet.

By Alan Madlane
Hamtramck is about to get a financial windfall from its marijuana dispensaries.
Cities which allow dispensaries to operate within their city limits get monies from the state each year, based on how much the state took in in taxes, based in turn on how many dispensaries are operating in each city.
The issue of dispensaries has been a hot-button one here, and various permutations of recent Hamtramck city councils have wrestled back and forth, pro and con with the very concept of allowing them to operate.
As it stands, no more dispensaries will be allowed to open in the city. There are four outlets operating in Hamtramck.
Last year, it was estimated that the four outlets would generate over $100,000 in taxes. However, the city has yet to collect tax revenue from the businesses, so that figure is not set in stone.
Additional fees paid by dispensaries are also shared with other cities this allow that type of business.
This past year, according to data from the Marijuana Policy Project (a pro-legalization organization), Michigan took in over $188 million in tax revenue from cities with dispensaries.
A portion of that will now be returned to those same cities, to use as they please. Data usually comes out in March, and the actual payments will arrive at a later date.
This much is certain: Legalized pot is helping pay the bills in communities that allow it.
And it’s coming at a time when Hamtramck is desperate for funds — from just about any source they can be materialized.
Hamtramck has been operating in deficit spending for the past two years, and by the end of this fiscal year, which ends June 30, the city’s budget surplus will be depleted.
Feb. 11, 2022