Michigan’s Cannabis Industry Faces Uncertainty Over 24% Tax
A heated debate is underway in Michigan’s courts over a proposed 24% tax on the state’s cannabis industry. The tax, which is set to take effect on January 1, is expected to generate $420 million for road funding. However, cannabis advocates are pushing back, arguing that the additional tax is unconstitutional and would cripple the industry.
The issue stems from the fact that Michigan voters approved the legalization of marijuana in 2018, which included a 10% tax. Cannabis advocates argue that any additional tax on the industry requires a 3/4 vote of the legislature, as stated in the state’s constitution.
The state, on the other hand, claims that the tax is necessary to generate revenue for road funding, given the significant profits made by the cannabis industry. Pro-cannabis groups, including the Michigan Cannabis Industry Association, are fighting the tax in court, citing the potential harm it could cause to the industry.
A hearing was held earlier this month, during which arguments were presented for and against the tax. No ruling has been made yet, leaving the fate of the tax uncertain. If the tax is implemented, it could have significant consequences for the cannabis industry in Michigan, including increased costs for consumers and potentially even the closure of some businesses.
