Michigan Judge Lets New Cannabis Tax Increase Proceed Amid Industry Lawsuit

Michigan's cannabis scene just hit a speed bump as a judge gave the green light for a new 24 percent wholesale tax to take effect. Despite a legal challenge from industry advocates who argued the levy was unconstitutional, the Court of Claims ruled that the state's original legalization act left the door wide open for "all other taxes." The new revenue is earmarked for fixing the state’s crumbling roads, but local businesses are worried it could put a major strain on their bottom line. While the judge did allow part of the lawsuit to continue—specifically to see if this tax messes with the original intent of the voters—the extra costs are hitting the market right now.

This matters to everyday tokers because when wholesale costs jump by nearly a quarter, those prices almost always trickle down to the dispensary shelf. It’s a classic case of the government using a successful industry as a piggy bank, which could make legal bud more expensive and keep the legacy market thriving. Keep an eye on this one as the case moves into the discovery phase.