Michigan Bill Seeks to Repeal 24% Wholesale Cannabis Tax 

A bill introduced in Michigan seeks to repeal the state’s 24% wholesale cannabis tax, 6 News reports. In a statement, Republican State Rep. James DeSana, the bill sponsor, called the tax an “unnecessary burden” on the industry and said that eliminating it would reduce supply chain costs and better allow the legal market to compete with the illegal market. 

“Government shouldn’t stand in the way of a competitive marketplace with excessive taxation. Repealing this wholesale tax is a commonsense step that supports Michigan businesses, protects consumers, and encourages participation in the legal market.” — DeSana, in a press release, via WLNS 

 DeSana told 6 News that he believes the tax was “deceitful” and that those who backed the tax knew it “wasn’t going to come anywhere near the $410 million projected.” According to the State Budget Office, from the date tax took effect – January 1 – through April 30, the tax generated $34 million, which is far below the $105 million per quarter the House Fiscal Agency had estimated.  

“I think the analysis was dishonest, to be honest with you,” DeSana told 6 News. “I just think there’s so many other ways that this marketplace works that trying to put a wholesale tax on just one section of the market was really wrong.” 

The proposal is currently in the House Committee on Appropriations.