Cannabis Wholesale Tax Not Meeting Revenue Projections

Michigan's wholesale cannabis tax is failing exactly as everyone predicted

MICHIGAN—For months, the cannabis industry warned state lawmakers about what would happen if they passed a 24% wholesale tax on marijuana: sales would fall, businesses would close, workers would lose jobs, and the state would collect far less revenue than projected. Lansing didn’t listen. So, here we are. A report released this month from the state Treasury confirms what the industry predicted all along. In the first three months of 2026—the fir…

Cannabis wholesale tax not meeting revenue projections

LANSING, MI (WKZO AM/FM) – Michigan’s new 25% wholesale tax on cannabis products enacted January 1st is not meeting revenue projections. The tax has generated $34-million in the first three months of 2026, well below the $86-million that had been forecasted by the Michigan Treasury Department. Treasury spokesperson Danelle Gittus says the tax is new and complex, and there are several factors that can impact collection of the tax as its implement…

Marijuana industry group: revenues from new cannabis tax suggest state plan failed

The latest numbers from the Michigan Department of Treasury are calling into question the state’s new 24% wholesale tax on marijuana. The Michigan Cannabis Industry Association says the state collected just under $34 million from the tax during the first quarter of 2026. The new tax was forecast to generate about $315 million for the fiscal year, suggesting cannabis tax revenue is far lower than expected when the new tax was approved by lawmaker…