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The reason Royal Oak is an attractive destination for any commercial enterprise is its ability to provide essential city services; including outstanding police and fire departments, efficient and professional public services, modernized infrastructure. Geographically, Royal Oak is ideally located for commercial enterprises.
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Monies will be collected from sales and excise taxes collected from retail stores called Provisioning Centers. Every sale, whether for marijuana products or non-marijuana products, at a state licensed provisioning center is subject to both a six-percent sales tax and ten-percent excise tax. The taxes are collected by the store and paid to the State of Michigan where each tax is then redistributed back to each community based on a formula whereby municipalities share in the net funds received.
For the marijuana excise tax, the participating municipalities will get one-unit share of the fund for each licensed store in its community. If Royal Oak has one store it would get one-unit share, if it had five stores, it would get five-unit shares. For additional information, please see the go to the link from the Michigan Department of Treasury:
With respect to fees collected, Royal Oak could require up to $5,000 for each new application processed as well as an additional $5,000 annually for renewal. The fee would have to be reasonably related to the cost of administering and enforcing the MMRTM Act.
In addition to the application fees, as with any commercial business in the city, each facility would be subject to permitted fees, inspection fees and increase in property value assessment causing additional revenues for the city.
If Royal Oak were to opt out, it will not receive any of the funds from taxes collected by the MMRTM Act.
For additional information on the program, please visit: https://www.michigan.gov/marijuana
There is no evidence to support the assertion development would be diminished with the inclusion of commercial marijuana businesses.