Michigan Republican Candidate for Governor Endorses Repealing Wholesale Cannabis Tax

John James, Michigan’s Republican gubernatorial candidate, said this month that he supports repealing the state’s 24% wholesale cannabis tax, Bridge Michigan reports.

Michigan lawmakers approved the wholesale cannabis tax last year as part of a bipartisan road construction and restoration plan supported by Gov. Gretchen Whitmer (D). The tax took effect in January despite multiple, ongoing legal challenges from the cannabis industry.

James told donors that he wants to “repeal or sharply reduce” the tax, which he said, “drives up prices, gives illegal operators a competitive edge, and has already fallen far short of revenue projections,” according to the report.

The nonpartisan House Fiscal Agency originally estimated that the wholesale tax would generate about $420 million per year. However, the state received less than a third of the quarterly expectations during the first few months of the tax.

Meanwhile, Michigan state Rep. James DeSana (R) introduced a proposal last month to repeal the wholesale tax, calling it an “unnecessary burden” and suggesting “the analysis was dishonest.”

In late August, Michigan cannabis dispensary Higher Love announced it would close five of its nine retail locations because of the added tax burden.