At 3:00 a.m. on October 3, 2025, Michigan’s Legislature passed a 24% wholesale tax on legal marijuana sales, without hearing a single second of testimony and just eight days after the bill’s language was made public (the tax is the subject of multiple other posts here on the Cannabis Law Blog). Unless blocked by the courts or repealed, the tax will take effect on January 1, 2026.Continue Reading Michigan Cannabis Tax Passes: Numbers

Takeaways

  • The law would tax a tax, creating a spiraling effect that significantly increases costs for growers, retailers, and consumers.
  • New rules would effectively force cash-on-delivery sales, putting financial strain on retailers who can’t access immediate capital.
  • Independent, family-owned, and social equity businesses are at higher risk of failure under the proposed tax model.

After failing to enact annual appropriations bills by the start of the new fiscal year, Michigan legislators have taken the unprecedented step of passing a short continuation budget. Nevertheless, legislative leaders and the governor are trying to keep a new 24% wholesale tax on marijuana. It hasn’t passed yet, and legal challenges are certain, but it’s worth taking a look to see the damage that will be done if the tax does go into effect.Continue Reading The Real Impact of Michigan’s New Wholesale Marijuana Tax

Takeaways

  • Michigan lawmakers fast-tracked a new 24% wholesale cannabis tax with no hearings or industry input.
  • The bill attempts to sidestep voter-approved protections by avoiding the 75% supermajority required to amend Michigan’s cannabis initiative.
  • The tax could exceed 24% for non–vertically integrated businesses, as rebates and discounts cannot reduce the taxable amount.

As everyone in Michigan’s cannabis industry is all too painfully aware, Michigan’s Legislative leaders and Governor have agreed to create a new (minimum) 24% wholesale tax on the state’s cannabis industry. The Michigan House of Representatives passed the bill (House Bill 4951) last Thursday, September 25, and action by the State Senate is expected on Tuesday, September 30.Continue Reading Bucking the Trend: Michigan Wholesale Tax Nightmare at Hand

Takeways

  • HB 4963 would require licensees to pay for cannabis products at the time of transfer.
  • HB 4964 and related bills would create a new Industrial Hemp Processing Act and ban intoxicating or converted cannabinoids.
  • Passage appears likely, but the final impact will depend on legislative compromise and regulatory enforcement.

On Tuesday, September 16, the Chairman of Michigan’s House Regulatory Reform Committee, Representative Joseph Aragona, introduced a package of bills to address two significant problems confronting Michigan’s cannabis industry—licensees defaulting on payments and unregulated intoxicating hemp products being sold throughout the state. (This is part two of our examination of this issue in Michigan; part one can be found here, and we’ve addressed hemp issues in other states and at the federal level elsewhere on the Cannabis Law Blog.)Continue Reading Michigan House Looks to Solve Cannabis Industry Issues, Addressing Payment Defaults and Hemp Regulation

Takeaways

  • New compliance requirements are coming: Texas agencies will soon roll out stricter rules on age verification, labeling, and retailer obligations.
  • Retailers face heightened risk: Noncompliance could result in loss of permits and increased enforcement by multiple state agencies.
  • Costs may rise: Licensing fees and compliance expenses are expected to increase, reshaping the competitive landscape.

On September 10, 2025, Texas Governor Greg Abbott issued Executive Order GA-56 to impose more rigorous regulations on THC products derived from hemp. The order comes amid legislative gridlock on how to regulate or ban hemp-derived THC products, as we previously reported on July 24 and July 7.

Key Provisions of EO GA-56Continue Reading Texas Issues New Executive Order on Hemp-Derived THC Products: What It Means for Industry and Lawmakers