TRAVERSE CITY — Grand Traverse County will distribute between $25,000 and $100,000 each to area service organizations in 2025, with a total of $500,000 in marijuana revenue earmarked for the grants.
County Administrator Nate Alger said the county received more than $900,000 in marijuana funds for 2024 and hopes to see similar or greater amounts in the future.
According to an Aug. 11 news release from the county, the funds are unrestricted, but the Board of Commissioners has chosen to test an initiative in which roughly half will support the county’s strategic plan through partnerships with nonprofits, churches, educational institutions, economic development organizations and other groups.
The revenue comes from the Michigan Regulation and Taxation of Marijuana Act, which imposes taxes and fees on adult-use marijuana facilities. The Michigan Department of Treasury allocates 15% of that revenue to counties where marijuana microbusinesses or retail establishments operate. Grand Traverse County’s Board of Commissioners determines annual distribution through its Marijuana Revenue Funds Spending Plan.
Priority for the 2025 funding will go to applications that show a clear connection to the county’s strategic goals, such as sustainable growth and addressing community needs. Applications will be scored based on alignment with the plan and projected community impact. Grants will generally be one-time awards, though multi-year funding may be considered for continuation projects with sufficient justification.
Applications for 2025 open in September and will be available on the county’s website along with details about the funding plan and requirements.
“This plan not only creates a structured process for using marijuana revenue,” Commissioner Ashlea Walter said, “but it reinforces our commitment to transparency, innovation and meaningful investment in both county services and community partnerships.”
What about other counties?
In February 2025, Michigan distributed nearly $100 million in adult-use marijuana payments to 302 local entities, including 74 counties and four tribes.
This nearly $100 million was allocated from the more than $331 million available for distribution from the Marihuana Regulation Fund for the 2024 fiscal year. The state law dictates that 15% of the funds raised by the 10% excise tax go to municipalities and Indian tribes where cannabis businesses are located, and another 15% goes to counties and Indian tribes with operations in their jurisdictions.
Adult-use marijuana distributions based on revenues collected in Northern Michigan by county as of February 2025 are:
- Antrim - $232,914.64
- Emmet - $174,685.98
- Otsego - $465,829.28
- Kalkaska - $291,143.30
- Cheboygan - $291,143.30
- Leelanau - $58,228.66
- Benzie - $174,685.98
- Manistee - $232,914.64
- Wexford - $116,457.32
- Crawford - $116,457.32
- Mason - $58,228.66
- Mackinac - $58,228.66
- Mecosta - $698,743.92
- Isabella - $756,972.58
Michigan voters approved the legalization of the recreational use of Marihuana for adults 21 years of age and older. The resulting legislation, known as the Michigan Regulation and Taxation of Marihuana Act (MRTMA), imposes an excise tax of 10% on retail Marihuana sales in addition to a 6% sales tax.
Municipalities and counties without licensed marijuana retail stores or microbusinesses are not eligible for tax revenue distributions from the state excise tax.
Michigan’s licensed retailers recorded $3.27 billion in adult-use cannabis sales last year, surpassing the $3 billion mark for the first time, according to the Michigan Cannabis Regulatory Agency (CRA). That represents a 9.9% increase from the $2.98 billion in adult-use sales from 2023.
Overall, Michigan retailers sold more than 1.1 million pounds of adult-use cannabis flower in 2024, representing a 17% increase from the 947,300 pounds sold in 2023 and a 112% increase from the 522,800 pounds sold in 2022.
How are funds used?
In addition to the state-mandated allocations, local entities and tribes that receive a share of the tax revenue have the flexibility to use these funds for a variety of local needs, including schools, roads, and other community needs, according to the State of Michigan. The flexibility allows for the tailoring of how these funds are spent to suit the specific needs of each community best.
For example, in 2024, nearly $100 million was distributed to municipalities, counties, and federally recognized tribes in Michigan, with over $931,000 going to four federally recognized tribes for the first time. Additionally, over $116 million was allocated to both the School Aid Fund and the Michigan Transportation Fund.
In 2024, 99 cities, 30 villages, 69 townships and 71 counties received payments from the Marihuana Regulation Fund. For the state of Michigan’s 2023 fiscal year, this means each eligible municipality and county received more than $59,000 for every licensed retail store and microbusiness located within its jurisdiction.