• The Michigan Department of Treasury will distribute tax revenue collected from marijuana sales to municipalities and counties.
• The government entities will get about $54,000 per retail store or microbusiness, based on nearly $94 million collected.
• Detroit, once again, will receive the most money of any municipality.

Michigan municipalities and counties that allow recreational marijuana dispensaries are set to receive far less money this year than last in their annual portion of tax revenue collected from cannabis sales.

Sales declined in 2025 for the first time since legal recreational marijuana sales started in December 2019.

A total of 114 cities, 39 villages, 81 townships, 75 counties and four tribes will receive payments from the Marijuana Regulation Fund, according to a March 3 news release from Michigan’s Cannabis Regulatory Agency. They will get about $54,000 per retail store or microbusiness, based on nearly $94 million collected.

Last year, each eligible government entity received a little more than $58,000 per business based on a total of nearly $100 million in marijuana tax revenue.

Detroit, once again, will receive the most money of any municipality. There are 61 active retailer licenses in Detroit, so the city will get nearly $3.3 million in tax revenue.

State law determines how the money is split. The Michigan Transportation Fund gets 35% of the revenue, which is used for the repair and maintenance of roads and bridges, and another 35% goes to the School Aid Fund to be used for K-12 education. The other 30% is split between municipalities, counties and tribes.

The payments come from revenue collected from the 10% recreational marijuana excise tax. This tax is separate from a new 24% wholesale tax that went into effect Jan. 1. The revenue from that tax will go to fixes for local roads.

Sales at recreational marijuana dispensaries declined by 3% last year to $3.17 billion, down from $3.28 billion in 2024, according to figures from Michigan’s Cannabis Regulatory Agency, leading to the smaller payouts. More government entities also split the revenue compared with last year.

Payments to municipalities could get smaller if sales continue to decline. Recreational marijuana sales in Michigan plunged nearly 16% in January compared with December as heavy snow, cold temperatures and fears of higher prices due to the new 24% wholesale cannabis tax kept consumers at home.

More on what to expect in 2026: Michigan’s cannabis market heads into a year of upheaval

More on the state’s cannabis industry: Michigan cannabis sales plunge 16% in January amid snow, new tax

While recent trends indicate a cooling period, a February report from Headset, a cannabis market intelligence firm, said the market — one of the largest in the country — has shown resilience over the last two years.

Below are the municipalities that received the most tax revenue:

1. Detroit: $3.3 million
2. Grand Rapids: $1.5 million
3. Lansing: $1.4 million
4. Ann Arbor: $1.2 million
5. Kalamazoo: $1 million
6. Flint: $648,000
7. Traverse City, Hazel Park and Adrian all will receive $594,000.