Michigan communities share tens of millions in recreational cannabis tax revenue

**Lowell** · March-01-23, 05:34 PM

The communities wise enough to permit sales that is. And let's not forget to add the money they didn't waste prosecuting and incarcerating cannabis users.

Some of the winners in the D are:
The county receiving the highest amount of tax revenue is Washtenaw County, which will receive nearly $2.1 million from its 40 licensees. Below is a sampling of what some other metro Detroit communities will receive:

Center Line: $415,000
Hamtramck: $207,000
Hazel Park: $415,000
Inkster: $156,000
Walled Lake: $156,000

All thanks to the more than $1.8 billion in recreational marijuana sales was reported for 2022.

Oh, and thanks to our neighbors in backwards Ohio and Indiana who get to pop over the line and enjoy Pure Michigan with enhanced sunsets.

**401don** · March-01-23, 06:07 PM

Those look like small sums. Wouldn't the licensing, administration, inspections, etc. cost a fare chunk of that?

**Richard** · March-01-23, 06:52 PM

After controlling for differences in bonds’ contractual features and changes in state economic conditions, the passage of medical marijuana laws increases the yield on state borrowing relative to yields on Treasuries of the same maturity by seven basis points [[0.07 percentage points) compared to states that do not.

“In dollar terms, MML [medical marijuana laws] increases a state’s interest cost by $7.35 million for the average total issuance amount per year,” the authors calculate. As marijuana usage increases after the passage of the law, so too does the spread; a one percent increase in use leads to a seven basis point increase in the spread.

This suggests that bondholders are ascribing greater risk to states that will have increased marijuana usage.

Furthermore, they find that states that passed medical marijuana laws have greater spending on police, correctional facilities, health, and public welfare. In comparison, during the same time period, states that liberalized marijuana did not have greater spending in other areas such as highways, natural resources, and parks and recreation.

“MML drives up states’ expenditures, increases states’ financial burdens, and thus adversely affects states’ debt servicing capacities and credit risks.” the authors conclude.

https://www.brookings.edu/blog/up-fr...ate-borrowing/

new study suggests a correlation between marijuana legalization and car crash rates. Research by the Insurance Institute for Highway Safety [[IIHS) and the Highway Loss Data Institute [[HLDI) show that auto accident rates spiked in California, Colorado, Nevada, Oregon, and Washington where recreational marijuana use and retail sales of the controlled substance are legal.

https://www.newsweek.com/iihs-car-ac...alized-1601285

It becomes a question of is it really a bonus,when it is offset by increased borrowing costs and higher insurance rates ?

It becomes a zero sum game,the taxpayers are paying increased costs in order for the city to gain an additional lump sum without actually calling it a tax increase,even though all residents will be required to pay it weather they par-take in the consumption or not.

So while it may look good on paper that a city received $415,000,if it cost them $1 million to do so,that would be considered very very very expensive money.

Let me know when the next check is ready I will trade you $415,000 for $1 million every day of the week. Twice on Sunday’s if people have a hankering to do so.

Cause and Effect.

That is the difference economically between de-criminalization and legalization.

**softailrider** · March-02-23, 04:45 PM

I quit using Marijuana back in 1989. From what I understand the strains they’re producing now are WAY more potent then what I was smoking back in the 70’s and 80’s. I guess thats great for those who partake. I’m kind of torn regarding its legalization. Half of me thinks it’s fine, give everybody of age anything the want, including cocaine, heroin, speed balls…. Who cares? If you want to kill yourself go right ahead.
Coming from somebody who used to smoke it, I can’t see where using Marijuana does anybody a world of good. But again, I have nothing against those who use it

**Lowell** · March-02-23, 05:41 PM

In the realm of intoxicants, cannabis is among the mildest and certainly nothing compared to alcohol or opioids. It doesn't kill anybody and, while possibly habit-forming, is non-addictive.

I don't argue for or against its use but to make it illegal and prosecute and incarcerate users is an insane waste of law enforcement resources. Being the small l libertarian that I am, I don't think there should be any restrictions on it or other intoxicants, beyond minors.

And I am delighted to see Michigan reaping the benefits of its legalization both in the billions in business revenue, the resultant thousands of jobs, tourism attraction, tax revenue, and savings from prosecution and incarceration.

**Jimaz** · March-02-23, 05:47 PM

Originally Posted by softailrider

... From what I understand the strains they’re producing now are WAY more potent then what I was smoking back in the 70’s and 80’s....

So I've heard — and I know people were experimenting even then with improving the species using grafting, etc. But Tommy Chong seems to think it's just a myth that the plant became more potent:

Old Weed vs New Weed with Tommy Chong

He says the difference today is that producers are more careful and selective about what they include in the final product and the plant itself is the same as it always was.

Me? I don't know and I'm not going to experiment. I am curious why Chong's opinion differs though. He is considered an expert after all.

**401don** · March-02-23, 05:52 PM

Originally Posted by softailrider

I quit using Marijuana back in 1989. From what I understand the strains they’re producing now are WAY more potent then what I was smoking back in the 70’s and 80’s. I guess thats great for those who partake. I’m kind of torn regarding its legalization. Half of me thinks it’s fine, give everybody of age anything the want, including cocaine, heroin, speed balls…. Who cares? If you want to kill yourself go right ahead.
Coming from somebody who used to smoke it, I can’t see where using Marijuana does anybody a world of good. But again, I have nothing against those who use it

Hard drug use, just like alcohol, does a world of hurt to families, health care resources, etc. The problem is deciding which is worse, the cost of legalizing vs. vainly trying to prohibit it. Vancouver is looking at copying Portland on decriminalizing hard drugs. Both have huge drug users/homeless on the downtown streets. CBC did a report from Portland this week. It's become much cheaper and usage is way up there. Everyone, including social workers, they interviewed said not to do it.

**Lowell** · March-02-23, 06:10 PM

The trouble with legalizing 'hard' drugs in one city or locale is that it makes them a magnet for persecuted users, many with serious issues, who can burden those locales with problems. Portland has much visible homelessness now, some of it the result of humane services offered which, in turn, are argued to be an attractant. Such change needs to be done on a state/province level at a minimum.

**softailrider** · March-02-23, 06:12 PM

Originally Posted by Jimaz

So I've heard — and I know people were experimenting even then with improving the species using grafting, etc. But Tommy Chong seems to think it's just a myth that the plant became more potent:

Old Weed vs New Weed with Tommy Chong

He says the difference today is that producers are more careful and selective about what they include in the final product and the plant itself is the same as it always was.

Me? I don't know and I'm not going to experiment. I am curious why Chong's opinion differs though. He is considered an expert after all.

Mr. Chong is full of shit. I know 3 people who were/still are in the marijuana business. I've been in their grow locations, your clothes reek from weed just stepping into those places. The stuff they're growing now ain't nothing like it used to be. From what I understand, one or two hit's off a joint of this modern weed makes you stupid.

**Lowell** · March-02-23, 06:19 PM

Originally Posted by softailrider

From what I understand, one or two hit's off a joint of this modern weed makes you stupid.

Today's cannabis is certainly not your grandma's ditch weed. One or two hits won't make you stupid but it will certainly get you up in the helicopter. Think of it as less lung abuse for those who have not switched to edibles. The days of smoking a joint are gone. Doing that much certainly could make one stupid.

**Richard** · March-02-23, 07:24 PM

"When someone takes marijuana at a low [THC] content to relax and to stone out, actually, it decreases your anxiety," she says. But high concentrations can cause panic attacks, and if someone consumes high-enough levels of THC, "you become full-blown psychotic and paranoid."
Weed can have a similar paradoxical effect on the vascular system. Volkow says: "If you take low-content THC it will increase your blood flow, but high content [THC] can produce massive vasoconstriction, it decreases the flow through the vessels."

And at low concentrations, THC can be used to treat nausea in cancer patients undergoing chemotherapy. But Volkow says that "patients that consume high content THC chronically came to the emergency department with a syndrome where they couldn't stop vomiting and with intense abdominal pain."
It's a condition called cannabinoid hyperemesis syndrome.

https://www.npr.org/sections/health-...t-health-risks

I have acquaintances that smoke it,$400 per ounce,they cannot stop coughing when they smoke it and because the police are less apt to ticket them they smoke more ,2 joints in a one hour drive,I have curtailed a lot of business that I do with them because they are getting progressively stupid and making rookie mistakes that started costing me money.

I guess the upside of those eating gummies for pain are not in pain anymore due to the ones laced with fentanyl hitting the market and killing them.

You were smoking ditch weed back in the 70s?

Tia stick,cinsimia,Hawaiian,hash all were 2 toke weeds,Columbia gold and red bud were casual smoke.

Mint weed laced with PCP,angle dust etc were the potency levels of some of the stuff out there today,definitely makes people stupid,maybe that’s why everybody is off the chain lately.

This is the norm anymore

https://m.youtube.com/watch?v=2PLC_cBJwk4

**Gistok** · March-02-23, 08:45 PM

^ I can agree with the panic attack issue... but that has to do with which strain... the SATIVA strain can give one a panic attack, while the INDICA strain doesn't seem to do that, and does mellow you out more... or so I've been told...

**jcole** · March-03-23, 09:32 AM

Indica is the type that you use for sleep and relaxation. About 2.5 mg knocks me out in about 1/2 an hour. Any more than that and I still get panic attacks. They ARE worse on the Sativa though. I can't even do 1/2 a Sativa gummy without heart palps.

Originally Posted by Gistok

^ I can agree with the panic attack issue... but that has to do with which strain... the SATIVA strain can give one a panic attack, while the INDICA strain doesn't seem to do that, and does mellow you out more... or so I've been told...

**DeLemur** · March-03-23, 10:26 AM

Overall, a positive step indeed. Is this part of the revenue sharing or a per license fee?

Richard, thanks for sharing the studies. Despite those signs [[if true) I think legalization is socially best for everyone. Economically, the transaction costs alone are probably pretty valuable.

Marijuana is incredibly strong today. That's why a lot of people just inhale one or two hits and keep it at that. Growing has gotten the intense scrutiny and tech advancement like most other industries in the last 50 years. Im very glad they started labeling edible content. Its important for proper ingestion and dosage.

Originally Posted by Lowell

The communities wise enough to permit sales that is. And let's not forget to add the money they didn't waste prosecuting and incarcerating cannabis users.

Some of the winners in the D are:
The county receiving the highest amount of tax revenue is Washtenaw County, which will receive nearly $2.1 million from its 40 licensees. Below is a sampling of what some other metro Detroit communities will receive:

Center Line: $415,000
Hamtramck: $207,000
Hazel Park: $415,000
Inkster: $156,000
Walled Lake: $156,000

All thanks to the more than $1.8 billion in recreational marijuana sales was reported for 2022.

Oh, and thanks to our neighbors in backwards Ohio and Indiana who get to pop over the line and enjoy Pure Michigan with enhanced sunsets.