LANSING, MI (WTVB) – State Senator Jonathan Lindsey, (R-Coldwater) has introduced Senate Bill 810 to repeal a controversial 24% wholesale tax on marijuana that went into effect on January 1, 2026.
Lindsey, who opposed the measure during its inception, argues the tax represents an “unnecessary growth of government” that threatens the viability of Michigan businesses and has already contributed to reported job losses. His legislation, which boasts bipartisan support from four Republican and three Democratic co-sponsors, seeks to revert the state’s cannabis taxation to the original structure approved by voters in 2018.
The bill has been referred to the Senate Committee on Government Operations for further consideration.
The 24% tax emerged from late-night budget negotiations back in October as a key component of Governor Gretchen Whitmer’s “Fix the Damn Roads” initiative.
Expected to generate roughly $420 million annually for a new Neighborhood Road Fund, the tax was narrowly approved in the Senate by a 19-17 margin.
While proponents argued the revenue was essential for infrastructure, the industry immediately challenged the law in court, claiming it unconstitutionally amended the 2018 voter-approved initiative without a required three-fourths supermajority. Despite these legal hurdles and a 16% drop in sales reported in the first month of 2026, the tax remains in place as industry groups continue their appeals.
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