US EditionMichigan Cannabis Industry Sues to Block New 24% Marijuana Tax
The Michigan Cannabis Industry Association challenges the 24% tax, which is projected to generate $420 million annually for road funding starting in 2026.
- The Michigan Cannabis Industry Association sued Tuesday in the Michigan Court of Claims to block a 24% wholesale marijuana tax set to take effect Jan. 1, 2026, seeking declaratory and injunctive relief.
- Embedded in the Comprehensive Road Funding Tax Act, lawmakers inserted the marijuana wholesale provision as part of a bipartisan budget compromise and advanced the bill rapidly after the House suspended rules on September 25, 2025.
- The lawsuit argues that under MRTMA, the 2018 law sets excise tax rules requiring voter approval or a three‑quarters legislative vote, and plaintiffs say the new law unlawfully alters MRTMA and breaches contract protections for suppliers and distributors.
- The nonpartisan Michigan House Fiscal Agency projects $420 million annually from the tax, while Michigan Cannabis Industry Association warns it could force insolvencies and job cuts among about 400 licensed marijuana businesses.
- With the tax set to begin Jan. 1, 2026, the case could reach the Michigan Supreme Court as Gov. Gretchen Whitmer and supporters say it's legal, while industry leaders warn of market harm.
19 Articles
19 Articles
Marijuana trade group sues to prevent 24% tax from going into effect
GRAND RAPIDS, Mich. (WOOD) — A trade association representing Michigan marijuana shops is suing the state, arguing a 24% wholesale tax on marijuana that's part of the new budget is unconstitutional and seeking to get it thrown out. The Michigan Cannabis Industry Association on Tuesday filed its lawsuit in the Court of Claims against the state of Michigan, the Department of the Treasury and the state treasurer. Gov. Whitmer signs $81 billion…
Michigan Marijuana Industry Files Lawsuit Against Newly Enacted Tax Increase - Marijuana Moment
The Michigan Cannabis Industry Association argues the tax hike would either need to be approved by voters or achieve a three-fourths vote in the Legislature. By Kyle Davidson, Michigan Advance A cannabis industry trade association is challenging the state’s newly approved tax on the sale or transfer of wholesale marijuana, filing the complaint shortly after the policy was signed into law. The suit, filed with the Michigan Court of Claims Tuesday…
Cannabis industry group files lawsuit aiming to invalidate Michigan’s 24% wholesale tax on marijuana
Photo via iStock/Getty Images PlusA cannabis industry trade association is challenging the state’s newly approved tax on the sale or transfer of wholesale marijuana, filing the complaint shortly after the policy was signed into law. The suit, filed with the Michigan Court of Claims Tuesday, argues that the new law, and the steps leading up to its enactment, violates several sections of the Michigan Constitution, including requirements for amend…
Cannabis trade group sues Michigan over new 24% wholesale tax - Detroit Metro Times
The state’s largest cannabis trade group has filed a lawsuit against Michigan, arguing that a new 24% wholesale tax on marijuana is unconstitutional and will devastate a legal market already struggling from plummeting prices and numerous closures.The Michigan Cannabis Industry Association (MCIA) filed the complaint Tuesday in the Michigan Court of Claims, just hours after Gov. Gretchen Whitmer signed the tax into law as part of the new state bud…
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