Michigan Cannabis Industry Protests Proposed 24% Tax

News Summary

On September 30, 2025, Michigan’s cannabis industry gathered in Lansing to protest a proposed 24% wholesale tax on marijuana products intended to fund road repairs. The tax has faced opposition from lawmakers and industry leaders who argue it could jeopardize the state’s growing cannabis market. The Michigan Cannabis Industry Association is considering legal action, citing potential constitutional violations. Critics of the tax warn it could push consumers back to the illicit market and threaten job security within the industry, emphasizing the need for balanced taxation in this evolving sector.

Lansing – Advocates and workers in Michigan’s cannabis industry gathered at the Capitol steps on September 30, 2025, to protest a proposed 24% wholesale tax on marijuana products aimed at funding road repairs. The high tax rate, included in a larger budget framework to avert a government shutdown, has drawn significant opposition from lawmakers and industry leaders alike.

Lawmakers, such as state Representatives Donavan McKinney and Mike McFall, indicated they would vote against the final budget if the 24% tax remains. This proposed tax is expected to generate approximately $420 million annually to maintain roads and bridges throughout the state. However, critics argue that such a high tax rate could undermine Michigan’s emerging marijuana sector and threaten job security within it.

The cannabis industry in Michigan has already contributed nearly $2 billion in taxes since the legalization of recreational cannabis in 2020. Notably, leaders in the industry, including Mike DiLaura, expressed concerns that the government views the cannabis sector merely as a source of revenue. They argue that the industry has proven to be a vital component of the state’s economy and should not be overtaxed.

Supporters at the rally shared their worries regarding the potential negative effects of the tax on local communities. For example, McFall highlighted the importance of cannabis tax revenue for places like Hazel Park, where these funds help support essential services such as emergency funding.

In addition to legislative pushback, the Michigan Cannabis Industry Association (MCIA) is considering legal action against the proposed tax. The group contends that the tax could violate the Michigan Constitution as it does not adhere to the required three-fourths majority for changes to voter-approved laws.

Concerns about the potential impact of the tax on consumers were echoed by Democratic Senator Jeff Irwin, who noted the risk of driving customers back to the illicit market if the cost of legal marijuana increases. Rep. Alabas Farhat also commented on the situation, suggesting that cannabis businesses might not be facing the struggles portrayed by advocates, citing the level of advertisement visibility in the market.

Several legislators and industry advocates reaffirmed their commitment to oppose the tax increase, either by pursuing court action or seeking its repeal if necessary. The proposal comes shortly after lawmakers averted a larger 32% tax that had been suggested by Governor Gretchen Whitmer.

As budget discussions continue, uncertainty looms regarding the outcome. While indications suggest that the government will not shut down on October 1, 2025, the fate of the proposed tax and its implications for the cannabis industry remain contested. Advocates who attended the demonstration displayed signs urging legislators to reconsider the tax, asserting that imposing such a financial burden on the legal market could deter participation and ultimately diminish job opportunities in the state.

The ongoing debate highlights the complexities surrounding the taxation of the cannabis industry and its financial contributions to Michigan’s economy. With both sides vocal about their concerns and intentions, the discussions in Lansing are set to shape the future of cannabis taxation in the state.

Deeper Dive: News & Info About This Topic

• Michigan Advance
• Google Search: Michigan Cannabis industry tax protest
• Michigan Capitol Confidential
• Wikipedia: Cannabis in Michigan
• Bridge Michigan
• Google News: Michigan cannabis tax lawsuit
• Detroit Free Press
• Encyclopedia Britannica: Marijuana
• Detroit News
• Google Scholar: Michigan marijuana tax impact