Michigan’s medical marijuana market has been increasing beyond expectations, producing more than $42 million in earnings since the very first dispensary started on Nov. 1.
In the very first month of operation, when just a few accredited dispensaries were available, $7.1 million in marijuana sales were listed together with the state Department of Licensing and Regulation. That figure grew to $11.9 million in January and slipped slightly to $11.2 million in February, a frigidly cold month using three fewer times compared to January. The complete for four weeks is 42,061,557.
In those four weeks, 8,670 lbs of marijuana have been offered in a median retail cost for customers of $213.91 per ounce. That translates to over $2.3 million sent to the state from the 6 percent sales tax and $1.2 million in the 3 percent excise tax.
David Harns, spokesman for LARA, reported that using more than 294,000 medical marijuana cardholders, Michigan is now the second-largest health marijuana marketplace in the country.
Michigan’s number is quite extraordinary because the state has just licensed 54 medical marijuana dispensaries and lots of those have just been available for a rather short amount of time.
“It’s a wonderful sign, because a substantial portion of the nation isn’t serviced by a dispensary yet.”
The nation’s voters approved medical marijuana at 2008 63-37% along with the Legislature passed bills at 2016 to govern and tax the industry. Voters approved a ballot proposal legalizing marijuana for adult recreational usage in November 56-44 percent and the marketplace is anticipated to surpass $1 billion after it assembles licensing to recreational companies early next year.
Thompson noted that not only are the earnings amounts encouraging, but the effect on the market is also striking.
“If we look at the economic advantage, it extends far beyond simple tax revenues,” he explained. “Firms are being made. Jobs are being made. And there’s redevelopment happening in dilapidated areas. The benefits of cannabis legalization are just now being accomplished by the country.”
The three percent excise tax on medical marijuana stopped Wednesday. That is because when Michigan voters approved legalizing weed for recreational usage last year, say law included language that the excise tax would be eliminated 90 days after recreational marijuana became lawful.
Both medical and recreational marijuana are still subject to the state’s 6 percent sales tax and recreational pot will also carry a 10 percent excise tax when it becomes commercially available for sale in early 2020.