Court Says “Yes” to 24% Pot Tax—Growers Call It a Market Killer

(LANSING) - Michigan's cannabis industry is gearing up for a legal battle after a Court of Claims judge declined to stop the state's new 24% wholesale marijuana excise tax, allowing it to kick in on January 1st. Producers and retailers statewide -- including shops in the Coldwater area -- warn the tax, piled on top of the 10% retail excise tax and 6% sales tax, would put Michigan among the most heavily taxed marijuana markets in the nation. They argue the move will drive customers back to cheaper, unregulated black-market products. State officials estimate the wholesale tax will generate $420 million, helping to fund Governor Gretchen Whitmer's $1.8 billion road improvement plan. Industry groups contend lawmakers improperly changed the 2018 voter-approved marijuana law, which they say required a three-quarters majority to amend. But the judge ruled the initiative clearly allowed for additional taxes beyond the 10% retail rate. The Michigan Cannabis Industry Association says the decision is far from final. Spokesperson Rose Tantraphol says they strongly disagree with the ruling and plan to file a swift appeal.