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Communities seeing benefits of marijuana tax boom

Local governments to receive funds for their licensed dispensaries

News Photo by Steve Schulwitz Nick Anderson, an employee at Parc Cannabis in Alpena, weighs some marijuana while at work on Sunday. The state announced on Friday that it will distribute $58,228 to cities, counties, and townships for each licensed marijuana business in them.

ALPENA — Local governments in Michigan will receive $58,228 for every licensed marijuana business that operates in their communities.

On Friday, the state government announced that this year’s allocation is slightly lower than last year, but local government officials say the revenue remains welcome and helps them stabilize budgets and complete projects.

The money comes from a 10% excise tax paid for each sale of the drug. A portion of the tax funds also goes toward education and transportation. Governing bodies can use the state revenue as they see fit.

Alpena County was the big winner this year, as it will reel in $232,914 for the four marijuana businesses it has.

County Administrator Jesse Osmer said the marijuana tax funding helps the county budget on the revenue side of the budget and assists in accomplishing things the county may not be able to do without the state marijuana funds.

“We greatly appreciate the significant contribution to our tax base from these businesses,” Osmer said. “As we enter the third year of receiving these tax dollars, the board of commissioners can now better anticipate where they’ll be designated. I assume the base amount will continue to go into the general fund with any additional money going toward our accounts for capital improvement or building and equipment upkeep.”

Three of the four businesses are located in Alpena, which will receive $174,685 for them. Sanborn Township, also in Alpena County is slated to receive $58,685 for its one licensed business.

Alcona County will also see a nice chunk of change from the state. It is scheduled to receive $174,685 for the three marijuana businesses it has, all of which are in Harrisville. Harrisville will receive the same amount as Alcona County.

Presque Isle will receive $116,457 for the two licensed marijuana businesses in the county and Rogers Township and Onaway will each receive $58,228.

Montmorency County and Briley Township will each receive $58,228 for the one marijuana shop in the county and township.

Brian Hanna, executive director of Michigan’s Cannabis Regulatory Agency, said in a press release that the sale of marijuana has had a positive impact on local governments and allows them to be more flexible with their spending.

“Municipalities, counties and tribes certainly benefit from their local cannabis businesses in many ways, including good-paying jobs, community involvement and increased revenues for important priorities in their budget,” Hanna said. “This portion of the excise tax revenue makes a direct impact in the communities where our licensees work and live.”

Local governments weren’t the only ones to benefit from the excise tax. The state also deposited $116 million into the School Aid Fund for K-12 education and the same amount into the Michigan Transportation Fund.

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