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yesterday

Michigan’s 24% Wholesale Cannabis Tax Signed Into Law as Industry Sues to Block It

A Court of Claims case contests the tax as an unlawful change to the 2018 voter‑approved marijuana statute.

FILE - Michigan Gov. Gretchen Whitmer gives a policy speech at an event, April 9, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)
FILE - Michigan Gov. Gretchen Whitmer gives a policy speech at an event, April 9, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)
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Overview

  • Michigan Cannabis Industry Association filed in the Michigan Court of Claims seeking to invalidate the tax and to secure an injunction before enforcement.
  • The levy applies to sales from growers and processors to retailers, with consumers still paying the existing 10% retail excise tax plus 6% sales tax.
  • Legislative analysts forecast roughly $420 million a year for road work as part of the $81 billion fiscal 2026 budget and the state’s broader road‑funding plan.
  • The new tax is scheduled to take effect on Jan. 1, 2026, pending the outcome of the Court of Claims litigation.
  • The complaint cites violations of supermajority rules, a change‑of‑purpose clause, and contracts concerns, while fiscal analysts project a 14.4% sales decline and industry leaders warn of higher prices and illicit‑market shifts.