Next month the state of Michigan will vote on a ballot initiative to legalize recreational marijuana. And while polls show it's likely to pass, a new story will possibly increase support even more.
A new analysis from the marijuana consulting firm VS Strategies says the state of Michigan will bring in around $130 million per year from cannabis tax revenue if voters legalize recreational marijuana next month. These numbers are based on projections that the state's cannabis industry will be worth around $800 million by 2020, and that the state will institute a 10 percent marijuana tax plus the already in place six percent state sales tax.
Michigan is already one of the more lucrative cannabis states in America. It has the highest amount of cannabis sales for a state that only allows medical marijuana. So if the state does legalize marijuana recreationally, those numbers will only increase.
It should be noted that Michigan's tax projections are a little below other legalized states. For instance, Colorado brought in nearly $250 million worth of cannabis tax revenue last year despite the state having three million less people than Michigan. However, Michigan's marijuana ballot initiative does institute some of the lowest taxes in the country.
Of course, first wee need to make sure Michigan actually does legalize recreational marijuana next month before we can start thinking about revenue and tax rates.
(h/t Detroit News)