Michigan Business Shuts Five Shops as Wholesale Tax Takes Its Toll

Running a dispensary in today’s legal market is no easy feat, and Michigan’s cannabis scene is proving just how tough things can get when high taxes meet heavy competition. Higher Love Cannabis Co., a well-known operator in the state, recently announced it is shuttering five of its nine storefronts across the Upper Peninsula. Consumers in places like Crystal Falls, Escanaba, Houghton, Munising, and Ontonagon saw their local shops close doors after August 9.

Why the sudden shutdown? According to the company, the heavy lifting comes down to a compounding tax structure. On top of standard state sales tax and retail excise fees, operators are hit with a steep 24% wholesale tax. When you stack all those financial obligations together, it creates a serious squeeze for dispensaries operating in smaller, rural towns where foot traffic is naturally lighter. Combined with statewide product oversupply and falling prices, smaller shops are finding it increasingly difficult to stay afloat while keeping prices fair for everyday consumers.

The good news for local enthusiasts is that Higher Love isn't disappearing completely. Their storefronts in Ironwood, Marquette, Menominee, and Norway remain open for business. Plus, lawmakers are taking notice; a bill introduced in the state legislature aims to eliminate the wholesale tax burden entirely, which could offer much-needed relief to independent operators across the state.

For consumers, this is a friendly reminder to support your local, fully licensed dispensaries whenever possible. Small-town shops do incredible work providing reliable access, tested products, and educated guidance to local communities. If your go-to spot is closing down, check nearby towns or look into delivery options to keep your favorite quality flower and edibles stocked up responsibly.