The Michigan Cannabis Industry Association is evaluating whether to sue the state over a new marijuana tax plan that is part of a larger road and budget deal state lawmakers could finalize soon.
State House lawmakers last week voted 78-21 to impose a 24% tax on the wholesale price of marijuana sold or transferred to a retail shop, beginning January 2026.
The proposal, part of a broader agreement to avoid a state government shutdown, could generate an estimated $420 million a year for road and bridge repairs, according to the nonpartisan House Fiscal Agency.
But the MiCIA is questioning whether the vote amounts to an illegal amendment to the recreational marijuana law voters approved in 2018.
Under the Michigan Constitution, citizen initiatives can only be changed through three-fourths majority votes in the Legislature. The House fell five votes short of that 83-vote threshold last week.
The cannabis association is consulting with attorneys, and if they feel strongly the new tax would amend the 2018 initiative, a lawsuit “would be our next step,” said Executive Director Robin Schneider.
“Certainly, we don’t want to have to get there.”
House Republicans maintain they’re on solid footing after consulting internally with their own legal counsel. Spokespeople for Gov. Gretchen Whitmer, who previously proposed a larger 32% wholesale tax on marijuana, did not respond to requests for comment.
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