State Lawmaker Calls for Repeal of 24% Marijuana Wholesale Tax
Rep. James DeSana says the repeal would ease costs for licensed operators as industry leaders warn the tax has accelerated closures and cut into revenue.
- Michigan State Representative James DeSana introduced House Bill 6224 to repeal the state's 24% wholesale marijuana tax, with the measure now referred to the House Appropriations Committee for review.
- Higher Love Cannabis Co. announced Monday it is suspending operations at five of its nine dispensaries, citing a "mounting tax burden" layered atop existing 10% retail excise and 6% sales taxes.
- DeSana argues the tax is failing, noting collections fell roughly $70 million short in the first four months of the fiscal year, potentially yielding a $210 million shortfall versus the $420 million originally projected.
- While critics argue repeal would deplete infrastructure funds, DeSana contends the state's $87 billion budget contains ample waste and $6 billion in alternative savings could fund local streets and bridges instead.
- Across Michigan's cannabis industry, oversupply and price compression continue to force business consolidations, even as the Michigan Cannabis Regulatory Agency distributed nearly $100 million in tax revenue to over 300 local governments and tribes earlier this year.
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Americans for Tax Reform
ussanews.comExcessive Cannabis Taxation Weeds Out Michigan Dispensaries
Since Michigan legalized recreational cannabis, the state’s legal market has been increasingly burdened by excessive and onerous taxes. With three separate taxes now applied to the product, the cost of operating legally has risen substantially, hurting businesses, driving up prices for consumers, and undermining the ability of the regulated market to compete with illegal sellers. In 2018, Michigan voters approved Proposal 1, which legalized recr…
Marijuana Moment
Michigan GOP Lawmaker Seeks To Repeal Marijuana Tax Increase As Rising Costs Cause Businesses To Close
A Michigan Republican representative has filed legislation that would reverse a recently enacted tax increase on marijuana businesses. The new bill, from Rep. James DeSana (R) would repeal the 24 percent wholesale cannabis tax that was enacted as part of legislation negotiated by Gov. Gretchen Whitmer (D) and House and Senate leaders last year. The tax was projected by state officials to raise $420 million, with the revenue aimed at funding road…
6 quick hits of cannabis news from across Michigan
MICHIGAN—Michigan’s cannabis industry is under pressure, and this week it showed. One dispensary lost its license, another company shut down five stores, and the state’s record-low weed prices are starting to look less like a bargain and more like a warning. Here’s what you might’ve missed: RECALL ROULETTE: Zaza in Mt. Morris Township is closing for good after surrendering its dispensary license to state regulators. One complaint, filed by an e…
Michigan Cannabis Sales Shrink As Ohio Surges 22% — Is The 24% Tax Changing The Midwest Marijuana Market?
Michigan Lawmakers Push To Repeal New Wholesale Tax As Businesses Close And Ohio’s Young Recreational Market Expands LANSING — Michigan and Ohio’s marijuana markets are suddenly moving in opposite directions. Michigan cannabis sales fell 5.1% year over year in July, even as neighboring Ohio’s much younger recreational market surged 22%, raising new questions about whether Michigan’s controversial 24% wholesale marijuana tax is adding to the fina…
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