Michigan Lt. Gov. Candidate Plans Bill to Suspend Wholesale Cannabis Tax

Michigan state Rep. Jay DeBoyer (R) announced plans last week to introduce a bill to suspend the state’s 24% wholesale cannabis tax for 12 months.

The proposal aims to give time for reevaluating the tax, which lawmakers passed last year as part of Gov. Gretchen Whitmer’s (D) plan to fund road repairs.

“The tax is generating tens of millions of dollars less in revenue than what was projected and there’s no enforcement agency to collect it,” DeBoyer said. “It’s also driving the marijuana industry back into the black market and forcing business owners who are following the law to compete with nefarious actors. This is a lose-lose.”

“I supported the original legislation at large for needed road funding, but I was always skeptical to impose a tax with no mechanism to collect it. The problems with that were clear. This pause is needed to reevaluate the future effectiveness of the tax. Otherwise, it’s a useless tax and the state is forcing local businesses to pay for a policy that isn’t working as intended. This should be addressed.” — Deboyer, in a statement

DeBoyer is currently running to be Michigan Lt. Governor on Republican John James’ ticket.

James told campaign donors in September that he wants to “repeal or sharply reduce” the wholesale cannabis tax.