The Green Rush started in Michigan several years ago and it has only gotten greener as it surpasses beer, wine and liquor.

During fiscal year 2023, which ended on Sept. 30, Michigan collected nearly $100 million more in recreational marijuana excise taxes than it did in fiscal year 2022, according to a House Fiscal Agency report.

The Breakdown

The Green Rush started in Michigan several years ago and it has only gotten greener as it surpasses beer, wine and liquor.

During fiscal year 2023, which ended on Sept. 30, Michigan collected nearly $100 million more in recreational marijuana excise taxes than it did in fiscal year 2022, according to a House Fiscal Agency report.

The Breakdown

Cannabis taxes totaled $266.2 million, a 49.1% increase over the year prior, and 38% higher than the $192.6 million collected from the sales of beer, wine and liquor the same fiscal year.

The growing gap between beer, wine, liquor and recreational weed taxes is a reflection of Michigan's powerful marijuana consumer market, noted Crain's Detroit, which explained how taxes are collected for each product.

Recreational marijuana is taxed at a 10% excise tax at the wholesale and consumer level. Alcohol wholesales are responsible for a $6.30 per 31-gallon barrel excise tax on beer and a $0.51 per gallon excise tax on wine and champagne. 

Meteoric Rise In Weed Sales

Michigan’s cannabis market has been on a wild ride since retail shops opened in December 2019. But nothing has quite compared to 2023 when dispensaries sold nearly $2.8 billion in recreational marijuana, topping it off with a monthly record of $270.63 million this past August. Based on its current monthly average of $243.3 million, Michigan is on pace to pull in more than $3 billion at the end of 2023.

Who’s Getting All This Money And What’s It Being Used For?

Crain's reports that taxes from 2022, which included an additional $5.8 million in medical marijuana taxes, the state distributed nearly $60 million to the 224 municipalities and counties that are participating in the sale of marijuana. The increase in marijuana sales is paying dividends to these communities. 

Less than 15% of Michigan's 1,773 municipalities have opted in to participate in the program, which means the remaining nearly 1,000 communities are receiving no tax revenue sharing.

Half of that remaining 70% of marijuana tax dollars was distributed to the state's School Aid Fund for K-12 education and the other half went to the state's transportation fund.

Read more at Crain's Detroit