LANSING, MI (WTVB) – Michigan State Representative James DeSana, has formally introduced legislation to repeal the state’s controversial 24% wholesale marijuana tax.
Formally designated as House Bill 6224, the proposed one-sentence measure seeks to entirely undo the tax, which originally took effect on January 1,of this year, as part of a bipartisan road-funding infrastructure package.
DeSana argues that the levy has severely missed its financial targets, the Republican lawmaker emphasized that initial collections came up roughly $70 million short of state projections in just the first third of the fiscal year, signaling that the tax could finish the year down by as much as $210 million.
DeSana, who has opposed the policy since its inception, contends that the 24% tax places an unnecessary financial burden on the legal cannabis supply chain and prevents licensed business owners from effectively competing with the illicit market.
Industry leaders have echoed his concerns, reporting that the steep wholesale surcharge—which stacks on top of Michigan’s existing 10% retail excise tax and 6% sales tax—has accelerated dispensary closures and operational downsizings across the state.
While critics of the repeal say that rolling back the tax will deplete planned revenue for local infrastructure projects, DeSana insists that the state’s $87 billion budget possesses ample waste and that $6 billion in alternative government savings could easily be redirected to fund local streets and bridges instead.
House Bill 6224 has been officially referred to the House Appropriations Committee for further legislative
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