Michigan’s new 24% wholesale tax on marijuana is generating revenue for road repairs, but a legal challenge could derail the funding source just as communities prepare for what officials expect to be a severe pothole season.
The tax, which took effect January 1, directs revenue to local road improvements. However, the Michigan Cannabis Industry Association and other opponents have filed a lawsuit challenging its constitutionality in the Michigan Court of Claims.
“We’re going to see I imagine an epic pothole season here,” said Denise Donahue with the County Road Association.
County road departments are expected to receive 55% of the tax revenue under the new law.
“For that to happen and be overturned, it doesn’t put us on a good path to restoring Michigan roads and bridges,” Donahue said.
The County Road Association filed a brief asking the court to consider the impact on road departments if the funding disappears.
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