Tell me about the extra 3% tax paid at provisioning centers. Where does it go? What is it used for?

A tax is imposed on each provisioning center at the rate of 3% of the provisioning center's gross retail receipts, paid quarterly to the department of treasury. Taxes may be remitted through Michigan Treasury Online at mto.treasury.michigan.gov. Treasury field offices will accept cash payments under $2,000. All cash payments over $2,000 must be brought to the BMR office in Lansing. The 3% tax is deposited into the medical marijuana excise fund and must be allocated, upon appropriation, as follows:

  • 25% to municipalities in which a marijuana facility is located, allocated in proportion to the number of marijuana facilities within the municipality.
  • 30% to counties in which a marijuana facility is located, allocated in proportion to the number of marijuana facilities within the county.
  • 5% to counties in which a marijuana facility is located, allocated in proportion to the number of marijuana facilities within the county. Money allocated under this subdivision must be used exclusively to support the county sheriffs and must be in addition to and not in replacement of any other funding received by the county sheriffs.
  • 30% to the state for deposit in the first responder presumed coverage fund
  • 5% to the Michigan commission on law enforcement standards for training local law enforcement officers.
  • 5% to the department of state police.

If a law authorizing the recreational or nonmedical use of marihuana is enacted, this section does not apply – i.e., the 3% tax goes away – beginning 90 days after the effective date of that law.