Michigan Senate Passes 24% Marijuana Tax, Completing Budget Deal
In a close 19-17 vote, the Michigan Senate has passed a 24% wholesale tax on marijuana products, a key component of the state’s budget deal. The tax is expected to raise $420 million in new revenue for road repairs and construction in the next fiscal year.
The vote came after intense negotiations between lawmakers and cannabis industry advocates, who had rallied against the tax, fearing it would harm the industry. Despite the opposition, the Senate Majority Leader, Winnie Brinks, was able to whip up enough bipartisan votes to pass the tax.
The tax is a crucial part of the budget deal, which was reached by Governor Gretchen Whitmer, House Speaker Matt Hall, and Senate Majority Leader Winnie Brinks. If the tax had not passed, the entire deal would have fallen apart, leading to a government shutdown.
Some lawmakers, including Senator Jeff Irwin, opposed the tax, citing concerns about its impact on the industry. Irwin argued that the tax would lead to a shrinking of the industry and potential closures of dispensaries across Michigan.
However, others, such as Senator Ed McBroom, supported the tax, citing the industry’s failure to meet its promise to generate significant new tax revenue. McBroom argued that the tax rate was still too low and that the industry needed to be “right-sized.”
The passage of the tax marks a significant victory for Brinks, who had to navigate a complex web of negotiations and compromises to get the necessary votes. The tax is expected to take effect in the next fiscal year, with the revenue generated used to fund road repairs and construction.
