COLDWATER, MNI (WTVB) – Local governments in Branch County are seeing a decline in marijuana tax revenue shares as statewide distributions for the 2025 fiscal year dip for the first time in the program’s history.
According to data released by the Michigan Department of Treasury on Tuesday, municipalities and counties will receive $54,017.10 per licensed retail store and microbusiness, a decrease from the approximately $59,086 distributed the previous year.
In Coldwater alone, which has 13 licensed dispensaries, the total municipal payment for 2025 is $702,222.30 down $54,743 from last year , Branch County $918,290 for 17 licenses is down $71,596 , while Quincy also saw a decline, receiving $162,051 for three licenses down $12,633 from a year ago and California Township’s single license brought in $54,017 a decline of $4,211.
The decrease in local shares follows a year where total statewide excise tax revenue fell by more than $5.6 million to $93.8 million. While the number of licensed facilities statewide grew to 868, the overall pool of revenue from the 10% retail excise tax shrank due to falling cannabis prices and a 3.1% year-over-year decline in total sales.
This funding is traditionally split, with 15% going to host municipalities and 15% to host counties, providing critical support for local budgets that officials in Branch County have relied on for infrastructure and general services.
Looking ahead, local leaders and businesses are bracing for further volatility following the January 1 implementation of a new 24% wholesale tax intended to fund state road projects. State Senator Jonathan Lindsey (R-Coldwater) has already introduced Senate Bill 810 to repeal the new levy, warning that the “triple-tax burden” could further suppress sales and inadvertently reduce the retail tax revenues that local governments depend on.
While January 2026 saw a record 16% month-over-month sales plunge, proponents of the new tax argue it is a necessary measure to address Michigan’s multibillion-dollar road funding gap.
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