With only a 10% excise tax on the sale of recreational marijuana, state officials are expecting a fairly substantial windfall in the next two years as the market, literally, lights up to the tune of $140 worth of product for every man, woman and child by the end of 2021.
“It’s a lot of money. We’re going to get a lot from recreational marijuana,” Chief Deputy State Treasurer Jeff Guilfoyle, told the Fourth Annual Michigan Economic Forecast sponsored by the Michigan Chamber Foundation and the Michigan Banker’s Association.
For the upcoming year, Guilfoyle said the Department of Treasury is projecting the state’s coffers will see $97.5 million in revenues. Remember, at a 10% taxation level, that means they expect recreational pot sales to hit $975 million this year.
For comparison purposes, State Treasurer Rachel Eubanks, noted the entire 2019 sales for medical marijuana was $219 million.
Guilfoyle said by 2021, the state expects to see $143 million in proceeds from recreational pot sales. That means they are expecting $1.43 billion worth of recreational pot sales next year. Remember, in just the short sales period that occurred in December of last year at a handful of licensed shops, the state saw $6.9 million in sales.
“So, that’s $140 in marijuana sales for every man, woman and child living in Michigan,” he exclaimed to a lot of murmurs by the bankers and business people in the audience.
“We think we’ll hit those numbers . . . based on what’s happened in other states.”