DOUGLAS — The Town in the Village of Douglas is dedicating its share of taxes on recreational marijuana sales to a fund for improving the Blue Star Highway corridor.

The fund will be directed to projects that advance the safety, economic vitality, environmental sustainability and visual appearance of the Blue Star Freeway corridor in Douglas, as outlined in a 2012 plan.

The city’s annual payment from state taxes and fees on marijuana businesses — in 2021, Douglas received $28,000 — will be collected in the Blue Star fund, the city council said.

The city’s two adult-use marijuana businesses are on the Blue Star Highway, so it made sense, city staff said, to use the money for Blue Star Highway improvements.

Michigan collects fees for marijuana businesses and a 10% excise tax on adult-use marijuana sales into the Marihuana Regulation Fund, then distributes the revenue based on a formula outlined in state law. State.

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Fifteen percent of unused revenue is distributed to cities and townships where recreational marijuana businesses were located. Municipalities received $28,000 for each business on their territory.

Another 15% goes to counties with marijuana businesses, again based on the number of retail stores and micro businesses.

In total, the state of Michigan paid about $10 million to cities, townships, and counties with recreational marijuana businesses.

Besides distribution to municipalities and counties, money from the Marihuana Regulation Fund also went to scientific research into the effects of marijuana in treating veterans’ medical conditions, to cover the administrative costs of regulating drug companies. marijuana, the School Aid Fund for K-12 education, and the Michigan Transportation Fund.

Blue Star Highway projects the money could be used for include sidewalks, bike lanes, crosswalks, signs, intersection safety studies and traffic calming solutions and the planting of trees. trees.

— Contact journalist Carolyn Muyskens at [email protected] and follow her on Twitter at @cjmuyskens.