Should I Keep My Medical Marijuana Card in Michigan – Part 1, Financial

Should I Keep My Medical Marijuana Card?

Since recreational marijuana for citizens over the age of 21 passed in Michigan, a lot of patients are wondering, should I keep my medical marijuana card? Here we try to give a simple breakdown of the financial benefits of keeping your medical marijuana card in Michigan.

Financial Benefits

The new recreational law, Michigan Regulation and Taxation of Marihuana Act, imposes a 10% Excise Tax on recreational marijuana sales. This is in addition to the 6% State Sales Tax. The MRTMA also eliminates the current 3% Excise Tax on medical marijuana sales, but the 6% State Sales Tax remains in effect. Although excise taxes are the responsibility of the retailer/dispensary, the cost is typically baked in to retail price. So, medical card holders will likely pay at least 10% less than recreational consumers.  However, the smart medical marijuana dispensary will provide additional discounts to medical customers as they tend to purchase in larger amounts and with more frequency.

Let’s Do the (Simple) Math

According to “PriceOfWeed.com” the average cost of “High Quality” cannabis in Michigan is $290/oz. For simple math, we’ll cut this price to $200 per ounce. Under Proposal 1, a medical card holder will likely spend at least 10% less at a dispensary than recreational consumers. A medical card holder’s annual savings will depend on the amount of cannabis consumed. Here is a handy chart that shows the potential annual savings for medical vs recreational.

Cannabis Purchased Per Month (Oz)

Medical Cost with Sales Tax (6%)

Recreational Cost with Sales & Excise Tax (16%)

Annual Savings for Medical Purchases

0.5

$106

$116

+ $120

1.0

$212

$232

+ $240

1.5

$318

$348

+ $360

2.0

$424

$464

+ $480

2.5

$536

$580

+ $528

Still not convinced?

Check out our next post on “Practical Reasons” to keep your Michigan medical marijuana card active.