“The court recognizes the serious questions about whether this discriminatory tax violates the intent of the cannabis legalization that Michigan voters approved in 2018.”
By Kyle Davidson, Michigan Advance
Court of Claims Judge Sima G. Patel on Monday denied the state of Michigan’s request to rehear a motion to toss a lawsuit filed by cannabis industry advocates against the 24 percent wholesale tax on marijuana which took effect on January 1.
In October the Michigan Cannabis Industry Association filed a lawsuit against the state, arguing that the Legislature’s decision to create a 24 percent tax on wholesale marijuana violates the state constitution by modifying the 2018 law established when Michigan voters approved a ballot proposal legalizing recreational marijuana.
Industry advocates have also warned that the tax would bring irreparable harm to Michigan’s marijuana industry, forcing small retailers out of business and pushing buyers into the black market.
In her early December ruling, Patel largely rebuffed arguments from industry advocates, denying the association’s request to block the wholesale tax from taking effect alongside its request to have the case resolved without a full trial.
However she did permit the case to move to trial, raising questions on whether the Legislature’s decision
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