A new 24% wholesale marijuana tax in Michigan is raising concerns among dispensaries and industry professionals. Rodney Holcombe, vice president of public policy at Leaflink, explained that the tax is levied at the point of transaction between cannabis businesses, such as between a cultivator and a manufacturer.
"This new tax will certainly have an impact on the hundreds of businesses that Leaflink works with in the state of Michigan," Holcombe said. Leaflink worked with the Michigan Cannabis Industry Association to push back against the initial introduction of the tax.
As of January 1, a one-time tax of 24% will apply only when a wholesaler sells to a retailer for the first time. Wholesalers are the ones who sell the goods in bulk distributors. The tax applies to wholesalers selling to retailers, like dispensaries, and micro-businesses that grow and process marijuana to sell directly to customers. Wholesalers are required to report and pay the tax quarterly.
"Our customers will have to make tough decisions and are going to have to, in some instances, increase their prices to meet this new tax burden," Holcombe said.
Read more at ABC 12
