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Michigan broke a record for marijuana sales in April, state data shows

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Michigan broke a record for marijuana sales in April, with nearly $200 million in cannabis purchases, according to state data.

The state recorded about $168 million in sales of recreational marijuana and $27 million in medical cannabis, for a total of nearly $195 million.

Andrew Brisbo, executive director of the state’s Cannabis Regulatory Agency (CRA), broke down the numbers, which showed a notable drop in medical marijuana sales from a year ago (in down 44%) and a significant increase in adult purchases (up). 60 percent) in that time frame.

Although the state has not speculated on the reasons for the record April sales numbers, it is true that April 20 is the unofficial Cannabis Day.

Last month’s transportation generated $19.5 million in excise tax revenue that the state can use to fund roads, schools and local governments. This is in addition to the $13 million in general sales taxes generated from cannabis sales.

Brisbo also pointed out that new sales record was set last month “despite the fact that the average retail flower price (ounce) fell from $203.91 in April 2021 to $123.54 in April 2022 for medical sales and from $245.99 to $133.19 for adult-directed sales.”

Meanwhile, Michigan officials announced in March that they would distribute nearly $150 million in marijuana tax revenue, split among localities, public schools and a transportation fund.

The state Treasury Department said the funding, made possible through tax revenue generated by the state’s adult cannabis program, includes $42.2 million for 62 cities, 15 villages, 33 townships and 53 counties.

That’s more than four times the level of funding the state provided to municipalities with cannabis tax money last year.

In total, in 2021, Michigan recorded $1,311,951,737 in adult-use marijuana sales and $481,225,540 in medical cannabis. In December alone, there were over $135 million in recreational cannabis purchases and approximately $33 million in medical marijuana sales.

Regulators also announced earlier this year that they had approved the state’s first-ever social consumption site for adult-use marijuana in Hazel Park. It stands to reason that as this sector of the marijuana industry grows, even greater tax revenue could follow.

Michigan isn’t the only state seeing major marijuana sales and struggling to put the resulting taxpayer dollars to good use.

In Colorado, the state released March sales data showing marijuana purchases rebounded in March after a prolonged decline this year. However, sales are still down from 2021 levels.

Adult marijuana sales in Illinois hit nearly $132 million in April, the second-highest monthly total since the market launched in 2020 and another sign the state’s industry is stabilizing after a collapse earlier this year.

Massachusetts collects more tax revenue from marijuana than from alcohol, according to state data released in January. As of December 2021, the state had collected $51.3 million in alcohol taxes and $74.2 million in cannabis taxes midway through the fiscal year.

Arizona generated more tax revenue for the state’s general fund from legal marijuana sales than from tobacco and alcohol combined in March, the state reported.

In total, states that have legalized marijuana for adult use collectively generated more than $3.7 billion in tax revenue from recreational cannabis sales in 2021, according to an MPP report.

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