Taxes on Michigan’s Record $1.1 Billion Lottery Ticket Will Fund State Government For Seven Hours

The winner of a $1.1 billion multistate lottery bought the ticket at a Kroger in Novi, Michigan. This would be the highest lottery prize won in Michigan and the third-largest lotto jackpot in U.S. history. If the winner takes the money in a lump sum payment rather than installments, the prize is worth $739 million before taxes.

It's not all good news for the unidentified individual. The income is counted when the ticket is purchased and Michigan's state government will take 4.25% off the top, or $31.4 million. The state budget — not including federal, private or local government funding — is $35.4 billion.

In other words, Michigan’s record lotto will fund just seven hours and 45 minutes of state government operations.