Michigan Wholesale Marijuana Tax Revenue Lags Far Below Projections
A case challenging the legality of the tax is pending in court
Michigan’s new 24% wholesale tax on marijuana brought in less tax revenue than projected in the first quarter of its existence, generating less money for repairing roads, according to a state treasury report.
When lawmakers voted to implement the wholesale tax last year, a nonpartisan House Fiscal Agency analysis estimated it would bring in about $420 million a year, or about $105 million a quarter.
But the Michigan Treasury Department report indicates the new tax has brought in nearly $34 million through the end of April, less than 33% of the original projection.
The new tax, which went into effect Jan. 1, is supposed to be a key contributor to a revamped state plan to fund road improvements. The tax revenue report was first reported by Crain’s Detroit Business.
The Michigan Cannabis Industry Association pointed to the lower-than-expected collections in the first quarter of 2026 as proof of its prediction that sales would decline because of the new tax.
“Our elected leaders made the cannabis industry a sacrificial lamb in order to have the illusion of a road funding fix,” said Robin Schneider, executive director for the association.
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