For the first time since Michigan legalized recreational cannabis in 2019, the state's adult-use industry is showing signs of contraction, a troubling shift for marijuana businesses and state and local governments that depend on the tax revenue.
Between January and April 2025, dispensaries sold $1.03 billion in cannabis products, according to new data from the state's Cannabis Regulatory Agency. That's down from $1.06 billion during the same period last year, marking the first year-over-year decline.
The slide may seem minor, but it marks a turning point for an industry once defined by rapid growth. From 2022 to 2024, first-quarter sales rose sharply each year. In the first four months of 2024, for example, adult-use sales jumped 17% compared to the year before. In 2023, sales nearly doubled over 2022.
That pattern has now reversed, and the stakes go beyond businesses and consumers. Adult-use cannabis is subject to a 10% excise tax and 6% sales tax. Since legal sales began, Michigan has collected more than $1.9 billion in cannabis-related tax revenue — money that helps fund schools, infrastructure, and local governments across the state.
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