Overview

• HB 4951 would impose a 24% tax on the wholesale price of cannabis starting next year if enacted.
• A fiscal analysis projects about $420 million in annual revenue, with $3 million set aside for implementation.
• The remaining funds would flow to a Neighborhood Road Fund dedicated to construction costs.
• The proposal adds to Michigan’s existing 10% excise tax from 2019, which distributes revenue to schools, roads, and host communities.
• Cannabis businesses warn the tax could force layoffs and push buyers to unregulated markets, while supporters frame it as a targeted source for road funding during budget talks.