Cannabis Group Predicts Michigan Could See Multimillion Dollar Pot Industry
The state of Michigan will see a multimillion-dollar pot industry from the onset of legal recreational cannabis, according to data released by the Coalition to Regulate Marijuana Like Alcohol. The group is leading the campaign to pass Proposal 1, an adult-use cannabis legalization initiative that will be decided by Michigan voters in this November’s election.
Under Proposal 1, the possession and consumption of marijuana would be legal for all Michigan adults 21 and older. The measure also creates a legal framework for commercial cannabis businesses and sets a 10 percent excise tax on recreational retail sales. All cannabis sales would be subject to the state’s six percent sales tax.
The Coalition to Regulate Marijuana Like Alcohol commissioned VS Strategies, a Colorado cannabis consulting firm, to develop sales and tax revenue projections if Proposal 1 is successful. The company based its predictions on data that showed nearly one million Michigan residents had consumed cannabis in the previous month and could be expected to buy product regularly.
Andrew Livingston, an economist and policy analyst with VS Strategies, projects that Michigan’s legal marijuana market will reach maturity by 2023, with nearly $1.5 billion in combined medical and adult-use sales annually. After that, the market would