Lansing, MI: Representatives of the state’s largest cannabis industry trade organization have filed a lawsuit to block the implementation of the state’s newly enacted marijuana tax.
Earlier this month, lawmakers passed a budget bill imposing a 24 percent wholesale tax on marijuana products sold in the state. The tax increase takes effect on January 1, 2026.
Last week, the Michigan Cannabis Industry Association filed litigation declaring the tax hike to be illegal because it improperly amends the state’s voter-initiated marijuana legalization law. They argue that any changes to marijuana-related taxes must be approved by a three-quarters supermajority in both chambers. (Another group has also filed a similar suit.)
Lawmakers narrowly passed the budget bill despite significant pushback from cannabis advocacy and industry groups.
“Raising taxes on adult-use cannabis products will escalate prices out of reach for many consumers,” stated NORML in an action alert that was shared with state lawmakers over 3,000 times. “This will drive a growing percentage of consumers to the unregulated market, thereby undermining the primary goal of legalization, which is to provide adults with safe, affordable, above-ground access to lab-tested products of known purity, potency, and quality. This proposed tax increase will also hurt state-licensed businesses and their employees because it will increase their costs and reduce their customer base.”
An estimated 40,000 Michiganders work in the state-regulated cannabis industry.
Last month, a legislative effort led by California NORML successfully rolled back marijuana-related taxes in that state. By contrast, lawmakers in Maryland and Minnesota both enacted cannabis-related tax hikes this year.
Additional information is available from Michigan NORML.