Critics of 24% wholesale tax on marijuana say it will boost black market, crush retailers

LANSING, MI (WKZO AM/FM) – Criticism of the state’s 24% wholesale tax on marijuana that will take effect January 1st is continuing.

Two lawsuits have been filed challenging the new law on the basis that it improperly alters the 2018 ballot initiative.

Critics are also warning the tax will crush small retail companies and will boost the black market.

Medical marijuana, CBD, and hemp are exempt from the wholesale tax.

The tax was included in the Fiscal Year 2026 budget approved last week and signed by Governor Whitmer this week. It is a compromise, as Democrats in the Michigan Senate wanted a 32% wholesale tax.