Cannabis sales will officially begin on December 1 in Michigan, but customers will probably have some difficulty finding cannabis legally: 79% of state cities have banned the opening of outlets.
Last week, Detroit became the last municipality to adopt an ordinance prohibiting producers and dispensaries from settling in its territory, even though the state legalized cannabis through a popular initiative in November 2018.
Nearly 1,400 of the State’s 1,773 cities, townships and villages have chosen to prevent the establishment of cannabis companies, whether for production or distribution. Most have simply adopted a wait-and-see approach and may return to the issue later.
So,Cannabis sales are expected to generate $180.5 million in taxes in 2020 and about $288 million by 2022-2023, according to the Michigan Senate Tax Agency.
Since, November 1, the Michigan Cannabis Regulatory Agency began accepting applications for licenses for dispensaries, producers, and processors. To date, 47 companies have pre-qualified.
The ban in Detroit was announced as temporary, at least until January 31, to allow the city time to adopt its recreational cannabis regulations. However, the city waited 5 days after the opening of licensing procedures to announce its ban, which surprised potential entrepreneurs. Therefore,under state law, any companies that have applied in the meantime to set up in Detroit will be able to receive their license and legally open.
The Reef, which operates a large medical cannabis dispensary in Detroit, for example, has requested a license to sell cannabis for all adults this month.