LANSING, Mich. (WILX) - On Tuesday, the Michigan Cannabis Industry Association filed a lawsuit that aims to challenge the 24% wholesale tax on marijuana, part of the State’s 2025-26 fiscal year budget.
Road funding and repairs were at the center stage in budget negotiations. The tax is estimated to generate more than $400 million, which will help repair both local roads and highways, as well as bridges.
The lawsuit argues a super majority is needed to pass the new tax because a previous voter-approved 10% excise tax passed after appearing on the 2018 ballot.
Nicholas Schrock, founder of Green Dolphin Craft Cannabis, says, “That number is going to force people out of business.”
“We’re working on very, very thin margins. Nobody in cannabis has a 24% profit margin. So, I mean, this tax is