New Michigan Marijuana Tax Could Shutter Businesses And Actually Reduce The State’s Cannabis Revenue, Industry Says

As state budget negotiations drew to a close last week, members of the Democratic-led Senate and the Republican-led House were able to reach a deal to bring in additional funding for road repairs through a plan that drew much debate: levying additional taxes on marijuana.

Hundreds of individuals from the cannabis industry came out in opposition to the proposal last week, gathering on the Capitol lawn and lining the halls of the building as lawmakers worked to finalize the state budget.

While the policy won support from both sides of the aisle, its detractors were similarly bipartisan as some lawmakers warned that an additional 24 percent tax on wholesale marijuana could carry a host of issues, from smothering small businesses to expanding the black market, and even opening the state up to a potential constitutional challenge.

Although Michigan Gov. Gretchen Whitmer (D) put her pen to the new tax law on Tuesday, the future of the law has already been challenged, with the Michigan Cannabis Industry Association filing a complaint the same day, arguing the law improperly alters the law initiated by voters when they agreed to legalize marijuana in 2018.

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Author: HP McLovincraft

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