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A cannabis industry trade association is challenging a new 24% wholesale cannabis tax in the Michigan Court of Appeals, arguing that lawmakers violated the state constitution by failing to pass the bill with the supermajorities required to alter a voter-approved initiative. While a lower court upheld the tax, the association warns that if the $420 million-per-year tax takes effect, it will cause businesses to close and people to lose their jobs.

Michigan Cannabis Industry Trade Association Asking Court to Block Wholesale Tax from Taking Effect Jan. 1 

Dec 26, 2025

Source:

TG Branfalt

Ganjapreneur



A cannabis industry trade association is asking the Michigan Court of
Appeals to block the 24% wholesale cannabis tax from taking effect on
January 1, Michigan Public Radio reports. In the appeal, the Michigan
Cannabis Industry Association (MICIA) contends that lawmakers violated the
state constitution by failing to pass the bill with the three-fourths House
and Senate supermajorities required by the Michigan Constitution to alter a
voter-approved initiative.

The organization had levied the same argument to the state’s Court of
Claims, which ultimately rejected it and upheld the tax.

MICIA spokesperson Rose Tantraphol told Michigan Public that the stakes in
the challenge “are incredibly high.”

“Cannabis businesses operate on thin margins. If this goes into effect on
New Year’s Day, businesses will close. Our neighbors who work in the
cannabis industry will lose their jobs.” — Tantraphol to Michigan Public

The state contends that the tax was passed lawfully as part of a
road-funding plan that does not alter the language of the voter-approved
2018 adult-use cannabis law. The tax was approved by lawmakers in October
and is expected to generate $420 million annually.

The voter-approved law only included a 10% excise tax on retail sales.

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