Michigan’s new pot tax is still on schedule for January

A judge has declined to block a new tax on marijuana in Michigan.

A 24% wholesale tax on the state’s pot will go into effect as planned in January.

Bridge Michigan reports that the Court of Claims judge who declined to block the tax did allow the cannabis industry’s challenge to the tax to proceed. The tax sits at the main intersection of a road funding plan that was passed by Michigan’s legislature earlier this year.

Industry groups are suing over the tax, which was part of the road funding deal in September. The marijuana industry has expressed concern that the new tax will drive people back in the direction of illicit sources, prompting a potential rise in crime.