10% Marijuana Tax proposed in Michigan for Development Projects
Posted by Sagar Satapathy on April 13, 2015.
While several marijuana proposals are doing the round in Michigan, an activist group has sought to include a tax system, which will impose 10% tax on retail sales of marijuana so that they revenue can be utilized to develop roads, schools and other infrastructure and social projects. This 10% tax would be in addition to the state sales tax.
40 percent of the total revenue will go to the Michigan Department of Transportation, while another 40 percent will go to School Aid Fund. The remaining 20 percent will go to the local government. The new proposal on Michigan's 2016 ballot seeks to allow residents to grow up to 12 plants of cannabis at home.
The Michigan Comprehensive Cannabis Law Reform Committee has released the draft language of its ballot proposal, which included the above clauses. The draft will be submitted to the Bureau of Elections next week. But, prior to that, the committee is seeking public input. If the draft is approved by the Board of State Canvassers, it will begin collecting signatures in June 2015.
The marijuana proposal would allow adults over 21 years of age to legally possess and consume pot. Hemp farming would also be legalized while allowing the residents grow up to 12 plants at home for personal use. Pro-marijuana people believe that Michigan can get something between $100 and $200 million in tax revenues from marijuana and hemp sales.
As Colorado generated $60 million from marijuana sale in 2014 by imposing a higher tax rate, the pro-Marijuana groups in Michigan believe that their state could gain more, as it has a bigger population as compared to Colorado. The Michigan Comprehensive Cannabis Law Reform Committee will have to collect 250,000 signatures in a 180-day period in order to make it to the 2016 ballot.