New Michigan Wholesale Cannabis Tax Would ‘Decimate’ Businesses, Industry Says
The bill moves to the Democratic-led Senate next for approval
Michigan marijuana industry experts are warning of dire consequences for the market if a 24% wholesale tax is signed into law, arguing it could “decimate” businesses currently struggling with oversaturation and declining price points.
The tax, approved 78-21 by the Republican-led Michigan House Thursday, would kick Michigan’s marijuana tax rate out from among the states with the lowest marijuana tax rates and push it up the ladder of states levying pot for big cash. Roughly 39,000 people are employed in the marijuana industry in Michigan, according to state records.
The tax hike is a key piece of a long-sought road funding deal and critical to a budget agreement being negotiated to avoid a government shutdown Wednesday. The wholesale tax on marijuana, a gas tax revenue swap and spending cuts to some state departments are expected to generate between $1.5 billion and $1.8 billion in additional road funding annually.
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