LANSING, MI (WTVB) – The Michigan Cannabis Industry Association (MiCIA) can move forward with its lawsuit challenging the state’s new 24% wholesale marijuana tax, which took effect on January 1, 2026.
Court of Claims Judge Sima Patel recently denied a motion from the Attorney General’s office to toss the case, ensuring the industry will have its day in court to argue the tax is unconstitutional.
This decision allows the case to proceed toward a full trial, where the central question will be whether the new tax violates the intent of the voter-approved 2018 law that legalized recreational cannabis.
While the lawsuit proceeds, Judge Patel previously denied the MiCIA’s request for a preliminary injunction, meaning the controversial tax is currently in effect and being collected to fund road repairs.
The industry argues that adding the 24% wholesale tax on top of the existing 10% retail excise tax and 6% sales tax will drive up consumer prices, force businesses to close, and push customers back to the illicit market, undermining the original law’s purpose.
The court has indicated that discovery will be required to develop evidence on these “questions of fact,” and the MiCIA has also filed an appeal with the Michigan Court of Appeals to pursue its full range of arguments.
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