The Metro: Exploring Michigan’s marijuana tax revenue and consumer concerns

The Michigan Department of Treasury announced last week that it is distributing $87 million in marijuana tax payments among 269 municipalities and counties throughout the state.

Ferndale City Manager Joseph Gacioch joined The Metro on Wednesday to discuss how those dollars are being put to use locally. 

He says $354,000 will go into Ferndale’s general fund  — about $50,000 more than anticipated — thanks to marijuana sales. The general fund is used for public safety, public works and other city services. 

Many city projects are costing 10-20% higher than they were budgeted for last year, Gacioch says, with the marijuana tax revenue helping to make up the difference. 

“We (local governments) operate under significant state tax law constraints that really restrict our ability to raise revenue,” he said. “So when you have the cost of goods and the cost of services changing as much as they have over the past two years, truth be told, yeah we are coming to rely on this revenue.”

Outlier Media Reporter Koby Levin also joined the show to discuss his recent reporting on the state’s oversight and testing of marijuana. 

Levin says one thing that can be misleading on labels for marijuana products is the potency, as different labs use different methods for testing it.

“The bottom line is anytime that we’ve seen independent evidence, it’s tended to show that those labels are still inflated,” Levin said. 

An independent study in Colorado, where marijuana is also sold recreationally, showed THC levels in 75% of the products tested were 15% lower than the label read, Levin said.

“And it means that, you know, you might not be getting quite as high as you think.”

Retailers are also charging higher prices for marijuana they claim has high levels of THC. 

More headlines from The Metro on March 6, 2024: 

• The Free Application for Federal Student Aid (FAFSA) has run into major delays. Wayne State University Director of Admissions Erika Matthews Jackson joined the show to provide more information on the process.
• OZ Media founder Omar Thabet shares with listeners what they can expect at the Hamtramck vs. Dearborn Charity basketball game this Friday at the Hamtramck Community Center.
• WDET’s Hernz Laguerre Jr. spoke with Detroit Councilwoman Latisha Johnson about a new sports dome coming to her district in Chandler Park.

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