The Michigan Cannabis Industry Association has filed a lawsuit challenging a newly approved 24% tax on wholesale marijuana sales, arguing it violates the Michigan Constitution. The association claims the tax either needs voter approval or a three-fourths legislative vote to modify the original 2018 law that legalized recreational marijuana and set a 10% excise tax. They also allege the bill's original title was misleading and that it underwent an unlawful change of purpose. The Michigan Cannabis Industry Association is seeking a declaratory judgment to invalidate the new tax and prevent its enforcement.

Michigan Cannabis Industry Sues Over New Tax Increase

Oct 8, 2025

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Marijuana Moment

Michigan’s cannabis scene is heating up, but not in the way we usually like. The Michigan Cannabis Industry Association just hit the state with a lawsuit to block a massive 24% wholesale tax that was recently signed into law. The industry's argument is simple: when voters legalized recreational weed in 2018, they set a 10% excise tax. According to the state’s constitution, changing that voter-approved law requires either a three-fourths legislative majority or a fresh vote from the people—neither of which happened here.

The lawsuit also points out some shady legislative maneuvers, claiming the bill’s purpose was swapped at the last minute and its title was misleading. This is a major win-or-lose moment for Michigan tokers. If this tax stands, those extra costs are almost guaranteed to trickle down to the dispensary shelves, making your favorite flower and concentrates more expensive. By fighting back, the industry is trying to keep prices stable and hold the government accountable to the rules the voters actually agreed upon. We’re keeping our fingers crossed for a community-first outcome.