COLDWATER, MI (WTVB) – Industry officials say the fight isn’t over, after the Michigan Court of Claims this week denied a preliminary injunction that would have blocked a 24% wholesale marijuana tax before it takes effect January 1, 2026.
Cannabis manufacturers and retailers across the state and in the Coldwater area claim the new 24% wholesale excise tax on top of the 10% retail price excise tax and 6% sales tax would give the state one of the highest tax rates on legal marijuana in the nation, and would promote more black market marijuana sales.
The state estimates the new marijuana tax will generate $420 million of the nearly $1.8 billion budgeted as part of Governor Gretchen Whitmer’s road funding plan.
Lobby groups claim the new tax amends the 2018 voter-passed Michigan Regulation of Marijuana Act and therefore required three-fourths support of the Legislature to be passed, but the Court of Claims judge Monday said the voter initiative “plainly stated” the 10% retail excise tax was “in addition to all other taxes.”
Michigan Cannabis Industry Association spokesperson Rose Tantraphol said her organization doesn’t believe the judge “made the right call, and they plan a swift appeal.
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