For the fourth consecutive month, adult-use cannabis sales in Michigan dropped compared to the same time last year, a troubling trend for marijuana businesses and state and local governments that depend on the tax revenue.
Between January and May 2025, recreational dispensaries sold $1.31 billion worth of cannabis products, according to new data from the state's Cannabis Regulatory Agency. That's down from $1.34 billion during the same period in 2024, marking the industry's first year-over-year decline since adult-use recreational sales began in December 2019.
While the drop may seem small, it marks a turning point for a market that has grown steadily since legal sales began. From 2022 to 2024, first-quarter sales rose sharply each year. In the first five months of 2024, for example, adult-use sales jumped more than 15% compared to the year before. In 2023, sales nearly doubled over 2022.
Now that trend has reversed, and the stakes go beyond cannabis businesses. Adult-use sales are subject to a 10% excise tax and a 6% sales tax. Since legalization, Michigan has collected more than $1.9 billion in cannabis-related tax revenue, which helps fund schools, infrastructure, and local governments.
Read more at The Detroit Metro Times