Members of Michigan's marijuana industry want the court to block a new 24% wholesale tax on marijuana, set to take effect Jan. 1. An Oct. 29 Court of Claims filing said the Comprehensive Road Funding Tax Act (CRFTA), passed on Oct. 3, which imposes the new tax is an "unconstitutional statute adopted in derogation of the voters' rights."
The law narrowly passed with bipartisan support following negotiations between the Republican-led House, Democrat-majority Senate and Gov. Gretchen Whitmer's administration. The agreed-upon state budget relies heavily on the newly pegged marijuana tax revenue.
Whitmer previously proposed a 32% wholesale tax on marijuana, projecting it could generate about $470 million in new revenue for road repairs. A legislative analysis predicts the 24% tax will generate $420 million.
However, marijuana insiders believe that figure is inflated and doesn't account for lost sales due to price increases, especially along the borders, where stores thrive selling to out-of-state buyers. The new tax would make Michigan's marijuana among the most heavily taxed in the nation.
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