Marijuana legalization would eventually generate $130 million a year in new tax revenue for Michigan, according to an economic analysis paid for by a group pushing the statewide ballot proposal.
The report from national marijuana consulting firm VS Strategies of Colorado anticipates Michigan retail sales would begin in 2020 and projects recreational pot will become an $800 million industry by 2024 if voters approve the Nov. 6 ballot measure. It suggests legalization here would be less lucrative than in Colorado, which began allowing adult sales in 2014.
Over the first five years, Michigan would generate a combined $520 million in revenue from a new 10 percent marijuana excise tax and the existing 6 percent state sales tax, per the analysis. Revenue from the excise tax would be divided between roads, schools and local governments.
Revenues could peak in 2023 but taper off slightly by 2024 as the market matures and “competition slowly