An industry group that represents cannabis businesses in Michigan filed a lawsuit Tuesday afternoon, challenging a state law that was signed hours earlier to impose a 24% wholesale tax on marijuana.
The tax, scheduled to take effect Jan. 1 in order to increase funding for roads, was at the center of a compromise that ended a months-long budget standoff between Democrats and Republicans in the Capitol last week. Gov. Gretchen Whitmer signed the tax hike into law on Tuesday.
But the suit from the Michigan Cannabis Industry Association asks the Michigan Court of Claims to upend it, arguing the change should have required supermajority support from the Legislature, which it didn't get, because it amends a ballot proposal that voters approved in 2018.
"The lawsuit details how the last-minute, late-night process occurred in violation of a range of other constitutional provisions," said Douglas Mains, one of the lawyers. "The association is asking the court to strike the tax in its entirety."
Read more at The Detroit News
