A Michigan Republican representative has filed legislation that would reverse a recently enacted tax increase on marijuana businesses.
The new bill, from Rep. James DeSana (R) would repeal the 24 percent wholesale cannabis tax that was enacted as part of legislation negotiated by Gov. Gretchen Whitmer (D) and House and Senate leaders last year.
The tax was projected by state officials to raise $420 million, with the revenue aimed at funding road repairs and construction.
The levy has been challenged in court through lawsuits filed by the cannabis industry.
“It’s time to repeal this failed tax and stop forcing taxpayers and businesses to pay for a policy that simply isn’t working,” DeSana told WNEM-TV
The GOP lawmaker said the tax is generating in less than half of what its supporters anticipated—falling roughly $70 million less in the first four months of the fiscal year, which could rise to a $210 million shortfall from projections, he told the local news outlet.
Removing the new wholesale tax would ease the fiscal burden on legal cannabis businesses and help them compete with the unregulated market, he argues.
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Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress
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