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, Proposal 1, imposes a 10% Excise Tax on recreational marijuana sales. This is in addition to the 6% State Sales Tax. Proposal 1 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.

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.