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While the constitutionality of Michigan’s new marijuana wholesale tax is being reviewed by the Michigan Court of Claims, the Michigan Department of Treasury has released what Treasury is calling “preliminary information” and FAQs about the administration of the tax. (Disclosure: Dykema is co-counsel with Honigman Miller for the Michigan Cannabis Industry Association’s challenge to the tax.) Those FAQs include reassurances about some industry concerns with the tax, and state that even though the tax takes effect January 1, 2026, it won’t be collected until January 15, 2027. Unfortunately, Treasury’s “preliminary information” is not only essentially meaningless, but it also demonstrates that Treasury is just making things up as it goes along.Continue Reading Fool’s Gold: Michigan Treasury Announces Illusory Reprieve on Marijuana Wholesale Tax

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 Unless blocked by the courts or repealed, the tax will take effect on January 1, 2026.Continue Reading Michigan Cannabis Tax Passes: Numbers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

  • 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

Takeaways

  • The proposed 32% wholesale tax on cannabis products could significantly raise prices for consumers, making it more challenging for an already struggling industry to maintain profitability.
  • The assessment of a wholesale tax would most likely radically restructure industry business practices.
  • Potential expansion of the Tobacco Products Tax Act (“TPTA”) would force the Marijuana industry to adapt to an entirely new regulatory and enforcement scheme, all while the industry is dealing with a comprehensive rewrite of the rules of the Cannabis Regulatory Agency.

On February 10, 2025, Michigan Governor Gretchen Whitmer released her “Mi Road Ahead” Plan to “fix the damn roads”—echoing her 2018 campaign slogan. To the consternation and fear of the cannabis community, the Mi Road Ahead Plan proposes creating a new 32% wholesale tax on cannabis products.Continue Reading Breaking Down Governor Whitmer’s Game-Changing Proposed New Wholesale Tax on the Michigan Marijuana Industry

The Drug Enforcement Administration (DEA) announced this week it will hold a hearing regarding the attorney general’s proposal to ease restrictions on marijuana. The hearing is scheduled for the morning of December 2 at the DEA’s headquarters in Arlington, Virginia, effectively delaying any further action on federal cannabis policy until after the upcoming election.Continue Reading Cannabis Rescheduling Timeframe Ends Speculation of Immediate 280E Tax Relief