Michigan's legal cannabis industry entered 2026 in a fragile state. Now, a bipartisan group of lawmakers is moving to reverse the policy that many operators say pushed the market closer to the edge.
Senate Bill 810, introduced Feb. 26 by State Sen. Jonathan Lindsey, would repeal the 24% wholesale cannabis tax that took effect Jan. 1. The tax was adopted last fall as part of a broader road funding package and applies to the first transfer of cannabis from a grower or processor to a retailer. The new tax is layered on top of the 10% excise tax consumers already pay at the register, as well as the state's 6% sales tax. Lindsey, a Republican from Coldwater, framed the repeal as both an economic and constitutional issue.
"I opposed the new tax increase, first and foremost, because it represents an unnecessary growth of government. Lansing's budget does not need to grow larger; we simply need better discipline. This tax will also damage Michigan businesses, and lead to widespread job losses across the state, which are already being reported," Lindsey said when introducing the bill.
"I also don't believe that in the long term this mechanism will generate the expected revenue, especially if sales go down as a result of the increased taxes or legal challenges against the tax prevail."
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