Michigan's cannabis industry is bracing for the impact of a newly passed state budget that introduces a steep 24% wholesale tax on marijuana products, and industry leaders warn of potential dire consequences.
According to ClickOnDetroit, Al Williams, president of the Detroit Cannabis Industry Association, described the tax as like a "gut punch" to businesses and consumers alike, projecting increases in prices across the board, from grams of flower to cannabis-infused gummies, effective starting the new year.
The tax hike is anticipated to generate $420 million annually, earmarked for road construction and repairs, and squeezed through the Senate by a tight vote. The intense deliberation behind the legislative push was chronicled by Michigan Advance, which documented the measures lawmakers took to prevent a full government shutdown and balance the demands of the budget with the arrival of new revenue streams, despite the opposition from both within the Senate and the cannabis industry itself.
The bill's passage narrowly avoided derailing the larger budget framework and underscored the Legislature's struggle with upholding the state's financial integrity and fostering an industry that has created significant job growth.
Read more at Hoodline Detroit
