Coldwater, Quincy, California Township, and Branch County learned their share of the excise tax collected under the Michigan Regulation and Taxation of Marijuana Act for the 2025 fiscal year on Tuesday, March 3.
Distributions fell by $4,211 per license compared to 2024. Total statewide tax revenue dropped $5.68 million to $93.77 million.
Branch County distributions:
A total of 114 cities, 39 villages, 81 townships, 75 counties, and four tribes will receive payments from the Marijuana Regulation Fund.
Since the 2024 distribution, one county and 10 more municipalities or townships have allowed retail marijuana sales.
The state added 14 retail licenses, bringing the total to 868.
All local governments except Coldwater allocated the funds to general revenue.
Coldwater designated its funds for park improvements, mainly at Rotary Park along the Coldwater River.
Local governments are concerned about further declining marijuana tax revenues next year.
Falling marijuana revenue in Michigan
Michigan enacted a 24% wholesale marijuana tax on Jan. 1, 2026, as part of a broader road funding package passed in 2025.
This tax is applied when cannabis moves from growers/processors to retailers, in addition to the existing 10% excise tax on retail sales and the 6% state sales tax.
Michigan cannabis revenue fell about 16% from December 2025 to January 2026, according to the Michigan Cannabis Regulatory Agency.
January 2026 saw the largest month-over-month sales decline since adult-use marijuana was legalized, the report showed.
The marijuana industry challenged the tax, and the appeal remains active.
Sen. Jonathan Lindsey (R-Coldwater) introduced Senate Bill 810 to repeal the 24% wholesale marijuana tax.
Critics, including Lindsey, warn that higher taxes may shrink the legal market, cost jobs, and ultimately reduce long-term revenue.
Supporters view the wholesale tax as a crucial funding source for roads and infrastructure, particularly the Neighborhood Road Fund.
There is also concern about lost revenues to the 35% for the Michigan Transportation Fund, used for road and bridge repair and maintenance, and to the 35% for the School Aid Fund, used for K-12 education.
Contact Don Reid, dReid@USATodayCo.Com
This article originally appeared on Coldwater Daily Reporter: Michigan retail marijuana tax shares drop for local governments
Reporting by Don Reid, Coldwater Daily Reporter / Coldwater Daily Reporter
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