LANSING, MI (WOWO) Michigan is distributing nearly $94 million in recreational marijuana tax revenue to 313 local governments, marking a decrease from last year as cannabis sales slow across the state. The Michigan Department of Treasury confirms $93.7 million from the 10 percent excise tax approved by voters in 2018 will go to 114 cities, 39 villages, 81 townships, 75 counties and four federally recognized tribes. The payments reflect revenue collected during the 2025 fiscal year. Under state law, 15 percent of marijuana revenue is directed to municipalities and tribes hosting retail stores or microbusinesses, with another 15 percent allocated to counties and tribes where those businesses operate. Each eligible local unit receives about $54,000 per licensed retail store or microbusiness within its borders. The remaining 70 percent is split evenly between the state School Aid Fund and the Michigan Transportation Fund. Treasury spokesperson Ron Leix says both funds will receive more than $109 million each in addition to the local distributions. Bridge Michigan reports the latest payout is down from $99.5 million last year as cannabis sales decline amid increased competition and falling prices. In January, adult-use customers purchased $226 million in recreational marijuana products, compared with $246 million during the same month a year earlier, according to the Cannabis Regulatory Agency. Medical marijuana sales showed a sharper drop year over year. Wayne County and Detroit are set to receive the largest combined payments, totaling more than $88 million. Ann Arbor is expected to receive about $1.2 million, roughly $200,000 less than last year, with City Administrator Milton Dohoney Jr. telling Bridge Michigan the city plans to continue funding affordable housing and diversion programs. The distribution is separate from a new 24 percent wholesale marijuana tax that took effect January first and is projected to generate more than $400 million annually for road repairs. A bipartisan group of state senators has introduced legislation seeking to repeal that tax, arguing it could increase consumer costs and impact cannabis businesses. The proposal has been referred to the Senate Government Operations Committee. The post Cannabis Sales Decline Impacts Michigan School and Road Funding appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less