Michigan Cannabis Industry Association Sues State Over New Marijuana Tax
The Michigan Cannabis Industry Association has filed a lawsuit against the state, challenging a new 24% wholesale tax on marijuana that is set to take effect on January 1, 2026. The tax is expected to generate $420 million annually, which will be used to fund road improvements as part of the state budget.
The lawsuit, filed in the Michigan Court of Claims, argues that the tax violates constitutional requirements for changing voter-initiated laws. Michigan voters legalized recreational marijuana in 2018, and the suit contends that any changes to voter-approved laws require either a three-fourths legislative vote or voter approval.
The Michigan Cannabis Industry Association claims that the tax was passed unconstitutionally, as it was approved by a simple majority vote rather than the required three-fourths vote. The association also argues that the tax was passed in violation of other constitutional provisions, including the requirement for a transparent and public process.
In a statement, the Michigan Cannabis Industry Association said, “The lawsuit details multiple ways in which the legislators acted unconstitutionally in the passage of this tax. We are asking the Court to strike the tax in its entirety.”
The association has shared a copy of the lawsuit with FOX 17, and is seeking to have the tax declared unconstitutional. The case is expected to be heard in court in the coming months.
