An unprecedented cannabis tax hike that took effect in Michigan on Jan. 1 significantly depressed legal sales, recent state data shows.
Michigan marijuana retailers reported about $227 million in sales in January, according to state Cannabis Regulatory Agency data. That’s a nearly 16% decrease from the $270 million in sales recorded in December, according the CRA.
And it’s also below the $246 million in sales reported in January 2025.
At least some of that December haul was price-conscious cannabis consumers stocking up before the tax hike, Fox 17 reported.
Michigan cannabis retailers enjoyed a record year in 2025, with more products than ever sold. However, price compression amid what operators say is an oversupply of product – plus retailers competing on price – meant overall sales revenue declined by $113 million to $3.17 billion on the year.
The average price of an ounce of flower has dropped by nearly 50% since 2023.
But that was before a controversial tax hike, approved by state lawmakers and Gov. Gretchen Whitmer in the fall, took effect.
Supporters, including Whitmer, say the new wholesale tax will raise as much as $420 million annually to fund roads and other infrastructure improvements in the state. The new tax is on top of a 10% excise tax and 6% sales tax.
Michigan cannabis product sales fell from 681,819 pounds in December to 518,000 pounds in January, according to the CRA.
Read more at MJBizDaily
