Michigan's cannabis industry is already struggling from plunging prices, layoffs, and shuttered dispensaries and cultivators. Now Gov. Gretchen Whitmer is pushing a whopping 24% wholesale tax on marijuana products that business owners warn will accelerate closures and drive customers to the illicit market.
With little to no warning to the cannabis industry or its consumers, the state House on Thursday voted 78-21 to approve the tax, which is projected to raise $420 million a year. But industry leaders say that estimate ignores the inevitable loss in revenue from losing customers, dispensaries, and cultivators.
In response, Michigan's top cannabis trade association is evaluating whether to sue the state over a new marijuana tax plan that is part of a larger road and budget deal state lawmakers could finalize Tuesday.
State House lawmakers last week voted 78-21 to impose a 24% tax on the wholesale price of marijuana sold or transferred to a retail shop, beginning January 2026. The proposal, part of a broader agreement to avoid a state government shutdown, could generate an estimated $420 million a year for road and bridge repairs, according to the nonpartisan House Fiscal Agency.
Read more at Detroit Metro Times and Bridge Michigan
