As of early July, Michigan has licensed growers to cultivate over 500,000 plants for both medical and recreational purposes. Between both markets, nearly 9,000 pounds were sold in May vs approximately 3,000 in January 2020, representing substantial growth in the industry. The majority of the recreational market supply continues to come from marijuana plants originally licensed under medical marijuana licenses, due to the ability to transfer medical marijuana for recreational sales after 30 days in inventory.
Early estimates indicate that in the next several years the adult-use industry alone will surpass $3 billion in sales annually, creating thousands of jobs and providing a boost to the state economy. Such projected rapid growth can present challenges in cash flow planning especially when coupled with tax considerations related to section 280E. Our dedicated team of cannabis accounting specialists is here to answer your cannabis questions. Call 248 355 1040.