Overview

• The Senate passed House Bill 4951 by a 19–17 margin early Friday, securing the final piece of the legislative budget package.
• Budget negotiators estimate the new revenue will total about $420 million for roads in the coming fiscal year.
• With the wholesale levy added to Michigan’s existing 10% excise and 6% sales taxes, the total burden on legal purchases is projected to approach 40%.
• The tax is slated to take effect Jan. 1, 2026, as industry groups prepare legal challenges that could seek to pause implementation.
• A 20% alternative floated by Sen. Stephanie Chang did not advance, while protests from operators and warnings from lawmakers highlighted concerns over layoffs and a shift to the illicit market.