A plan to raise money for road repairs by increasing marijuana taxes quickly advanced through the Michigan House late Thursday as part of what officials called a larger framework for a state budget deal.
The proposed Comprehensive Road Funding Tax Act would impose a 24 percent tax on the wholesale price of marijuana sold or transferred to a retail shop, beginning in January.
That would generate an estimated $420 million a year, according to the nonpartisan House Fiscal Agency. Most of the funding from the proposed Comprehensive Road Funding Tax Act would go into a new Neighborhood Road Fund for local roads and bridges.
The pot tax proposal passed the Republican-led House with bipartisan support in a 78-21 vote just hours after it was unveiled, with opposition from 10 Republicans and 11 Democrats. It now goes to the Democratic-led Senate for further consideration.
A separate bill approved Thursday—and tied to the pot tax proposal—would extend new federal income tax exemptions on tips and overtime pay to state filers for three years. That would benefit qualifying workers but cost the state more than $150 million annually between 2026 and 2028, according to the fiscal agency.
The votes came shortly before Gov. Gretchen Whitmer, Senate Democratic Leader Winnie Brinks and Republican House Speaker Matt Hall announced a framework agreement to pass the budget before a potential government shutdown next week.
That will include a road funding plan totaling between $1.5 billion and $1.8 billion in annual funding, according to Hall, R-Richland Township.
Hellbound and Down 