Summary
Michigan Governor Gretchen Whitmer signed a new law imposing a 24% tax on marijuana sales between producers and dispensaries. The tax is projected to generate $420 million annually and will help fund road repairs in the state as part of a $1.8 billion plan. While some believe the tax will address infrastructure needs, others fear it could increase prices, reduce sales, and drive consumers to the black market.
Key Facts
- Michigan now has a 24% tax on wholesale marijuana sales, starting from producers to dispensaries.
- The new tax aims to raise about $420 million each year for road repair projects.
- Consumers still have to pay the existing 10% excise tax plus a 6% sales tax on marijuana retail purchases.
- Analysts expect a 14.4% drop in sales due to the higher tax.
- Some critics worry the tax may push consumers towards illegal marijuana markets due to higher prices.
- The tax was part of final budget negotiations in Michigan’s $81 billion fiscal plan for 2026.
- About $1 billion from the budget will go toward local road and bridge repairs.
- Previous efforts to fix roads with a gas tax increase and a bonding program faced challenges.
