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In 2022, pot taxes brought in hundreds of millions for Illinois and Michigan once more

The previous year, recreational marijuana sales brought in hundreds of millions of dollars in tax income for Illinois, Michigan, and Minnesota, which aims to join the party by making marijuana completely legal.

Wisconsin, however, is surrounded by states where marijuana is legal, making it almost an island of marijuana restriction. Yet, experts warn that as the state moves closer to legalizing medicinal marijuana, decision-makers will be able to learn from the mistakes of the states that took the initiative.

Neighboring states bordering Wisconsin talk about the tax advantages of their legal marijuana businesses, with a sizable portion of those funds undoubtedly coming from residents of Wisconsin who cross the border to purchase officially. Although there is a shortage of reliable data, critics are concerned about the consequences.

As stated by the state’s Cannabis Regulation Agency, Michigan generated $325 million in tax income from medicinal and recreational sales in 2022 with a 10% excise tax and a 6% sales tax. That is a roughly 30% increase above tax revenue in 2021.

The Michigan Department of Treasury said in February that the recreational tax income generated throughout the fiscal year that runs from October 2021 to September 2022 would be distributed to towns and counties in the amount of $60 million. The program also contributed around $70 million to the Michigan Transportation Fund and K–12 education.

Compared to the previous fiscal year, when the treasury distributed roughly $42 million to towns and counties and a total of $99 million to K-12 education and other programs, these payments from Michigan’s marijuana regulatory budget are up over 40%.

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