Michigan marijuana sales reached a record high in December, state data shows.
While medical cannabis purchases have gradually declined, the adult-use market has more than made up for that drop, with total sales hitting $221.7 million last month. That’s about $9 million more than the previous record set in September.
The state Cannabis Regulatory Agency (CRA) shows that December saw $208,318,037 in recreational cannabis sales and $13,419,377 from medical marijuana purchases, as New Cannabis Ventures first reported.
What’s more, the state is experiencing this total sales surge even as the average cost of marijuana has continued to dip, with the price of an ounce now hovering around $90. In December 2021, by contrast, the cost of an ounce was about $180.
Most of the cannabis purchases came from flower, followed by vape cartridges and infused edibles, CRA’s data reveals.
Consumers set another record in December, spending over $221 million on marijuana products. Michigan adult-use sales reached an all-time high,$208,318,037, while medical sales came in at $13,419,377. The 10% excise tax and the 6% sales tax adds up to $34.6 million in total taxes.
— Michigan Cannabis Regulatory Agency (CRA) (@MichiganCRA) January 19, 2023
Arizona’s marijuana market has seen similar trends, with the state recently announcing that cannabis sales reached a record high in October. Medical marijuana purchases are also declining in the state, but the recreational market is on an upward trajectory.
Illinois marijuana sales hit a record high of more than $1.5 billion in 2022—and this past December marked the strongest sales month to date—officials announced earlier this month.
Meanwhile, Michigan regulators announced last year that they are issuing another round of grants to support research into the therapeutic benefits of marijuana for military veterans, using tax dollars the state generated from adult-use cannabis sales.
This time around, CRA said that it has recommended awarding $20 million in grants to two universities as part of the Veteran Marijuana Research (VMR) Grant Program.
Michigan officials also announced last year that the state would be distributing nearly $150 million in marijuana tax revenue, divided between localities, public schools and a transportation fund.
The state Treasury Department said that the funding—made possible from tax revenue generated from the state’s adult-use cannabis program—includes $42.2 million for 62 cities, 15 villages, 33 townships and 53 counties.
That’s more than four times the level of funding that the state paid out to municipalities with cannabis tax dollars in 2021.
Regulators also announced last year that the they approved the state’s first-ever social consumption site for adult-use marijuana in Hazel Park. It stands to reason that, as that sector of the marijuana industry grows, even more tax revenue may follow.
Lawmakers in that city also approved a resolution designating September as a month of awareness of the therapeutic potential of psychedelics—making it the second city to take the symbolic additional step after locally decriminalizing natural plants and fungi.