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$3.7 million from marijuana tax revenue goes to Kent, Ottawa, Muskegon counties and local governments

A total of $42 million in adult-use marijuana distributions awarded to Michigan counties and local governments.

MICHIGAN, USA — Three West Michigan counties and some municipalities in them are set to receive over $3.7 million in marijuana tax revenue.

The Michigan Department of Treasury announced Monday that counties and municipalities from across the state will receive a portion of than $42.2 million as a part of the Michigan Regulation and Taxation of Marijuana Act.

A total of 62 cities, 15 villages, 33 townships and 53 counties will receive the payments from the Marijuana Regulation Fund starting next week.

"The Michigan Department of Treasury will distribute these dollars as soon as practical to eligible local units of government," State Treasurer Rachael Eubanks said. "The doubling of this year's payment amounts will have a larger impact on local government budgets." 

Each eligible municipality and county will receive more than $56,400 for every licensed retail store and microbusiness located within its jurisdiction.

A total of more than $111 million as collected from the 10% adult-use marijuana excise tax for 2021, making a total of $172 million available for distribution.

Of the $172 million distributed, $42.2 million in disbursements was given to municipalities and counties, $49.3 million was sent to the School Aid Fund for K-12 education and another $49.3 million to the Michigan Transportation Fund.

The City of Lowell is being distributed $282,267.20, a number City Manager Michael Burns was not expecting. 

"I was kind of thinking more along the lines of maybe $100,000, at least that's what we had budgeted," said Burns. "$282,000 was just something I never envisioned."

Burns said they plan to use those funds and apply it to their local street fund. The more money than expected would give them "a pretty aggressive street plan we can accomplish in the next seven years." 

He also said it allows the hiring of a full-time police detective.

Lowell has five microprocessors and dispensaries in operation, another three or four "coming online" and approved three grow facilities. 

"I understand people have different opinions about it," said Burns, "but the fact of the matter is, the way the laws are written, and the way the laws were created, we have to take a free market approach to to the number of facilities in our community. It's going to bring in revenue that the city would never ever bring in on our own."

The City of Grand Rapids is set to receive $677,441.28. In a statement, a spokesperson for the city said it is "good news and exceeds expectations that were incorporated into our current fiscal plan."

"The City Manager expects to fold this revenue into his preliminary budget," read the statement. "The City Commission will consider the investment of the revenue as part of its FY2023 budget discussions beginning later in April and May the spring."

The City of Muskegon will get $451,627.52. A set portion, 35%, will go toward an education component like advertisements about the danger of driving under the influence of marijuana. Jake Eckholm, the development services director, said they are also looking at several parks improvements. 

Eckholm said the impact goes beyond taxes. 

"These entities are taking previously vacant buildings in our community and doing often doing seven figure remodels," said Eckholm. "A lot of taxable improvements from the real property tax side. And then they're employing a lot of people who now pay our city income tax. So, the industry in general has been very impactful on the community. It's obviously was, and continues to be, an issue that people have strong feelings about. But just from a pragmatic, financial, public service, provision standpoint, it has been a benefit to the city of Muskegon."

Listed below is how the funds were distributed to Kent, Muskegon and Ottawa counties and the local municipalities within the counties.

Kent County

  • Kent County - $1,072,615.36
  • Cedar Springs - $56,453.44
  • Lowell - $282,267.20
  • Grand Rapids - $677,441.28
  • Sand Lake - $56,453.44

Total for all Kent County Municipalities, Counties - $2,145,230.72 

Muskegon County

  • Muskegon County - $677,441.28
  • Muskegon - $451,627.52
  • Muskegon Heights - $56,453.44
  • Muskegon Township - $169,360.32

Total for all Muskegon County Municipalities, Counties - $1,354,882.56

Ottawa County

  • Ottawa County - $112,906.88
  • Crockery - $112,906.88

Total for all Ottawa County Municipalities, Counties - $225,813.76 

See the total disbursements to Michigan municipalities and counties here:

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