New Buffalo Township’s standing as the Midwest’s busiest cannabis hub is only getting stronger, with new dispensaries opening and more attention from regional media highlighting just how concentrated the industry has become along the Michigan-Indiana line. MOTM scanned those recent reports for this update.
The township now hosts nearly 30 retail cannabis outlets, an unusually high number for a community its size. Its location just off I-94 at Exit 1 — and within easy reach of Chicago and northern Indiana — continues to make it a destination for out-of-state buyers seeking lower prices and wider availability than they’ll find closer to home. Cannabis is still illegal in Indiana.
That’s a trend MOTM has followed for several years, as the township quickly emerged from Michigan’s early recreational rollout as a go-to stop for cannabis customers crossing the state line — a position it has only solidified as more retailers have come online.
Revenue windfall continues
The growth is translating into real dollars for the township.
New Buffalo Township received about $1.4 million in state cannabis excise tax revenue tied to 2025 sales, reflecting Michigan’s formula that distributes roughly $54,000 per licensed retailer to local communities.
Statewide, marijuana tax revenue remains a major funding source, delivering tens of millions of dollars annually to local governments, along with more than $100 million each for schools and transportation. A newer 24% wholesale tax aimed at road funding is expected to add significantly to those totals going forward.
Growth brings pressure points
At the same time, the scale of the industry is drawing increased scrutiny locally.
Residents at recent meetings have raised concerns about:
- Traffic congestion, particularly near Exit 1 and along U.S. 12
- The growing number and visibility of dispensaries
- Quality-of-life issues such as litter and increased visitor volume
Township officials have begun addressing some of those concerns, including stepping up oversight of operations and discussing infrastructure needs tied to the continued growth.
What comes next
Even as Michigan’s cannabis market matures and pricing pressures increase statewide, New Buffalo Township remains a prime example of how location continues to drive the industry.
For now, the formula is still working: strong demand, steady tax revenue, and a level of retail concentration that keeps the township the epicenter of the region’s cannabis economy — even as local leaders and residents weigh how that growth fits into their community long term.
By the Numbers
- ~30 — Estimated number of cannabis dispensaries in New Buffalo Township
- $1.4 million — Township share of 2025 state cannabis excise tax revenue
- ~$54,000 — State distribution per licensed retailer
- $100M+ — Annual statewide funding for schools from marijuana taxes
- $100M+ — Annual statewide funding for roads and transportation
