79% Michigan cities ban cannabis sales

Cannabis sales will officially begin December 1 in Michigan, but customers will likely have some trouble finding them legally: 79% of the state’s cities have, in fact, banned the opening of retail outlets.

Last week, Detroit became the latest municipality to pass an ordinance banning producers and dispensaries from operating within its boundaries, even though the state has legalized cannabis through a ballot initiative in November 2018.

Nearly 1,400 of the state’s 1,773 cities, counties, and villages have chosen to prevent cannabis businesses—whether for production or distribution—from setting up operations. Most have simply adopted a wait-and-see approach and may revisit the issue later.

Cannabis sales are expected to generate $180.5 million in taxes in 2020 and approximately $288 million by 2022–2023, according to the Michigan Senate Tax Agency.

On November 1, the Michigan Cannabis Regulatory Agency began accepting license applications from dispensaries, cultivators, and processors. So far, 47 companies have been prequalified.

The ban in Detroit was announced as temporary—at least until January 31—to give the city time to adopt its recreational cannabis regulations. However, the city waited five days after the licensing application process opened to announce the ban, which took potential business owners by surprise. Under state law, any businesses that applied in the meantime to set up operations in Detroit will be able to receive their licenses and open legally.

The Reef, which operates a large medical cannabis dispensary in Detroit, for example, applied for a license to sell cannabis to all adults this month.