Michigan Senate Democrats are reportedly moving toward implementing a major tax hike on marijuana that was previously proposed by Gov. Gretchen Whitmer (D).
While no legislation to effectuate the policy change has been filed yet, the plan is to impose a 32 percent wholesale excise tax on cannabis—which would be in addition to the existing 16 percent in taxes that are placed on marijuana at the retail level.
The governor said in February that the proposal would “close a loophole that exempted the marijuana industry from wholesale tax, which is applied to similar smoking products, like cigarettes, and other tobacco items.” Aligning those tax policies, her office said, could help the state fund plans to “fix the damn roads for generations to come.”
“After voters legalized marijuana, the industry has grown exponentially thanks in part to Michigan’s industry-friendly taxes, the fourth lowest in the nation,” the governor said at the time. “The industry, which recorded billions in sales in 2024, uses Michigan roads to transport marijuana multiple times throughout the process, including to grow operations, testing labs, distribution hubs, and finally retail stores. This will add an additional $470 million to help fix roads across the state.”
It would also
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