Michigan Senate Bill Seeks to Repeal 24% Marijuana Tax
A new bill in the Michigan State Senate aims to repeal the controversial 24% wholesale excise tax on marijuana. Following a sharp 16% drop in sales and revenue shortfalls for schools and communities, lawmakers argue the tax has damaged the industry and failed to meet funding projections.
Michigan lawmakers are moving to scrap a hefty tax that critics say is stifling the state’s cannabis industry. A new bill(SENATE BILL NO. 810) introduced in the State Senate proposes a full repeal of the 24% wholesale excise tax on marijuana, which only recently went into effect. The legislative push comes in response to alarming market data: Michigan recorded a nearly 16% year-over-year decline in marijuana sales this January, marking the steepest monthly drop since legalization began.
- Read more: Wholesale Marihuana Tax in Michigan
Senator Jeff Irwin of Ann Arbor, a co-sponsor of the repeal, argues the tax was a policy mistake from the start. He points to immediate negative consequences, including business closures, job losses, and a reduction in cross-border commerce. Crucially, the tax is also failing its primary beneficiaries. While it was projected to generate $420 million annually for road infrastructure, actual revenues are falling significantly short. This shortfall is now hitting the budgets of host communities and K-12 schools that rely on cannabis tax distributions. The repeal bill has been referred to the Government Operations Committee for review.
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