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Paraphrasing Whitesnake, “Here we go again on our own!”

Michigan cannabis growers need no reminding that by this time last year, the Michigan House of Representatives had passed a road funding plan, and members were tripping over themselves to say it wouldn’t require any tax increases. At the eleventh hour, though, with the cannabis industry hanging on the promises of no new taxes, everything changed. The House threw a 24% wholesale tax on marijuana into a bill that didn’t even mention the industry, and, wasting no more time (not even a single committee hearing), rammed it through.

Continue Reading Hey, Michigan Growers! Legislators Want More Taxes!

Takeaways

  • Michigan’s new 24% wholesale cannabis tax is in effect on January 1; however, Treasury’s last-minute guidance raises significant compliance, pricing, and litigation risks for licensees.
  • Treasury’s use of a blanket “average wholesale price” based on assumed markups—not actual transaction data—may conflict with statutory and constitutional requirements.
  • With constitutional challenges pending and more litigation expected, cannabis businesses should prepare now for audits, disputes, and rapidly evolving enforcement positions.

As the new year is upon us, Michigan’s wholesale cannabis tax takes effect on January 1. A mere 35 hours beforehand, Michigan’s Department of Treasury published the “average wholesale price” to be used for affiliate transfers and updated its FAQ’s. Treasury has also prepared a draft Revenue Advisory Bulletin—although Treasury has not made this public on their wholesale marijuana tax webpage.

Continue Reading January 1 for Michigan Cannabis: A New Year, A New Headache

Takeaways

  • President Trump’s executive order significantly accelerates the long-stalled federal process to reschedule marijuana to Schedule III.
  • Rescheduling could eliminate Internal Revenue Code Section 280E, fundamentally changing the tax economics of cannabis businesses.
  • A move to Schedule III could unlock new federal opportunities, including potential access to trademark protections previously unavailable to cannabis operators.

On December 18, 2025, President Trump signed an executive order to fast-track the reclassification of marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA). Schedule I is the most restrictive classification under the CSA and is reserved for drugs with no currently accepted medical use and a high potential for abuse. Other Schedule I drugs include heroin, LSD, and ecstasy. By contrast, Schedule III drugs are those with a moderate to low potential for physical and psychological dependence, such as Tylenol with codeine. The gravity of this decision and its impact on the cannabis industry cannot be overstated.

Continue Reading President Trump Signs Executive Order To Reschedule Marijuana To Schedule III: Quick Takeaways for Cannabis Operators