Michigan’s marijuana industry is challenging a 24% wholesale tax passed into law last year, claiming it unfairly compounds taxes on marijuana and exceeds the state’s 6% sales tax cap. The lawsuit, filed by a marijuana grower, retailer, and industry association, argues that the tax structure is unconstitutional.
The lawsuit was filed in the Michigan Court of Claims on Friday by Mitten Distro X LLC, Refine Michigan Co., and the Michigan Cannabis Industry Association. The industry is seeking to have the tax overturned, citing concerns that it will lead to higher prices for consumers and make it difficult for businesses to operate.
The tax, which was passed into law last year, is designed to generate revenue for the state’s general fund. However, the industry argues that it will have the opposite effect, driving consumers to the black market and causing businesses to shut down.
The lawsuit is the second challenge to the tax, following a similar lawsuit filed earlier this year. The industry is hoping that the courts will rule in their favor and strike down the tax, which they believe is unfair and unconstitutional.
