Governor Gretchen Whitmer proposed a 32% wholesale tax on marijuana as part of her MI Road Ahead plan to raise $470 million. Some Michigan growers worry this could shut their doors.
Currently, adult-use marijuana is sold with a 10% excise tax and the standard 6% sales tax, which means that Whitmer's proposal would add a third tax.
"After voters legalized marijuana, the industry has grown exponentially, thanks in part to Michigan's industry-friendly taxes, the fourth-lowest in the nation," a press release from Whitmer's office read. "The industry, which recorded billions in sales in 2024, uses Michigan roads to transport marijuana multiple times throughout the process, including to grow operations, testing labs, distribution hubs, and finally retail stores."
The low tax rate was proposed to drive people into a cheaper legal market instead of the black market, but this black market isn't just for street sales by strangers. Dustin Walsh, a business reporter with Crain's Detroit, told Stateside that growers desperate for money could feed into black market sales, too.
Read more at Michigan Public