Marijuana Industry Challenges Michigan’s New Wholesale Tax
A lawsuit filed by the Michigan Cannabis Industry Association is set to be heard in the Michigan Court of Claims this week, challenging the state’s newly imposed 24% wholesale tax on marijuana. The lawsuit alleges that the Legislature and Governor Gretchen Whitmer violated the state constitution by implementing this tax as part of a last-minute budget deal.
The Michigan Cannabis Industry Association argues that the tax amendment on marijuana, passed as part of the Comprehensive Road Funding Tax Act, was done without the required supermajorities mandated by the state constitution. They claim that this tax will have detrimental effects on businesses and livelihoods within the cannabis industry.
On the other hand, the state contends that the tax is a separate revenue law aimed at generating $420 million for road improvements and does not alter the voter-approved initiative legalizing recreational marijuana. The state’s position is that the tax is a part of a broader framework for regulating marijuana and is not an amendment to the existing laws.
The hearing, scheduled before Court of Claims Judge Sima Patel, will determine whether the industry’s motion to block the tax before its implementation on January 1 will be granted. The outcome of this hearing could have significant implications for the future of the marijuana industry in Michigan.
