US EditionAs Michigan Marijuana Tax Jumps to 40%, Critics Worry It’ll Fuel Black Market
The 24% wholesale tax on marijuana is projected to generate $420 million annually to fund Michigan’s road repairs starting in 2026, despite opposition from cannabis advocates.
- Shortly after 3 a.m., the Michigan Senate approved a 24% wholesale marijuana tax, finalizing the Legislature's budget deal on Oct. 3, 2025.
- The budget deal tied the levy to road funding negotiated by Governor Gretchen Whitmer, House Speaker Matt Hall and Brinks, with lawmakers warning failure to pass it could collapse the deal.
- Amid protests, lawmakers faced warnings that the 24% marijuana tax could impact the sector, as prices fell to $62 per ounce and first-half sales reached $1.58 billion.
- Legislature's fiscal agencies estimate the levy will raise $420 million annually for a Neighborhood Road Fund, and the bill moves to Gretchen Whitmer, Governor, to take effect on Jan. 1, 2026.
- The package pairs the marijuana levy with a gas tax swap raising the per-gallon tax from 31 cents to 51 cents while repealing the 6% sales tax on fuel, with the House approving 78-21 last week.
12 Articles
12 Articles
Tax hike worries Michigan cannabis industry
LAWTON, Mich. (WOOD) — Part of the new state budget comes with a 24% excise tax wholesale price on marijuana. The revenue collected would go to new road fund. But cannabis industry members say it will do more harm than good. "I just don't understand. They can't comprehend the amount of taxes that will be lost if it truly affects the industry in the way we think it will," said Thomas Docekal, founder of Green Hippo Provisioning outside of Lawto…
The Detroit News
Shoreline Media GroupNew tax on marijuana heads to Whitmer's desk after late-night Senate approval
New tax on marijuana heads to Whitmer’s desk after late-night Senate approval
By Beth LeBlanc and Craig Mauger, MediaNews Group The Michigan Senate approved a 24% wholesale tax on marijuana early Friday morning, marking the key vote in a wide-ranging deal to increase funding for roads and to achieve a new state budget. At about 3 a.m. Friday, senators voted 19-17 in favor of the tax hike, which the Legislature’s fiscal agencies estimate will generate $420 million in additional annual revenue, after it takes effect on Jan.…
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