If Michigan voters approve the legalization of recreational marijuana next month, that could bring hundreds of millions of dollars in new tax revenue to the state by 2023.
That's according to a new report from the nonpartisan Senate Fiscal Agency.
If voters pass Proposal 1 in November, the analysis found that by 2022-23, Michigan could get $287.9 million in new tax revenue.
The state estimates the costs of law enforcement and regulation by counties and municipalities are projected to cost $25.9 million, still predicting $262 million in net tax revenue.
The breakdown of the money distribution is below:
- School Aid Fund: $140.2 million
- Michigan Transportation Fund: $62.8 million
- Counties: $26.9 million
- Municipalities: $26.9 million
- General Fund: $17.6 million
- Constitutional Revenue Sharing: $10.6 million
- Administration/Enforcement: $2.8 million
The ballot language for Proposal 1 that will be on the ballot on Tuesday, Nov. 6 can be read below.
This proposal would:
- Allow individuals 21 and older to purchase, possess and use marijuana and marijuana-infused edibles, and grow up to 12 marijuana plants for personal consumption.
- Impose a 10-ounce limit for marijuana kept at residences and require amounts over 2.5 ounces be secured in locked containers.
- Create a state licensing system for marijuana businesses and allow municipalities to ban or restrict them.
- Permit retail sales of marijuana and edibles subject to a 10% tax, dedicated to implementation costs, clinical trials, schools, roads, and municipalities where marijuana businesses are located.
- Change several current violations from crimes to civil infractions.
- Should this proposal be adopted?
