Michigan lawmaker seeks repeal of 24% marijuana wholesale tax

Michigan State Representative James DeSana has formally introduced House Bill 6224 to repeal Michigan's 24% marijuana wholesale tax, arguing the levy has fallen well short of revenue targets and is undermining the legal cannabis industry. The tax took effect on January 1 as part of a bipartisan road-funding infrastructure package, and DeSana said collections were about $70 million below projections in the first third of the fiscal year, putting the annual shortfall on pace to reach roughly $210 million. He and industry leaders say the wholesale tax, which comes on top of the state's 10% retail excise tax and 6% sales tax, is making it harder for licensed operators to compete with the illicit market and is contributing to dispensary closures and cutbacks. Critics say repealing the tax would reduce funding intended for local infrastructure, while DeSana says savings elsewhere in the state's $87 billion budget could cover roads and bridges instead.

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