--- title: Advocates Say 24% Tax Will Hurt Cannabis description: Michigan's proposed 24% tax on cannabis sparks debate, with concerns about job losses, black market growth, and impacts on small businesses. image: https://420intel.com/hubfs/elsa-olofsson-G_nKIjoL9sE-unsplash.jpg --- [![420intel.com](https://420intel.com/hs-fs/hubfs/Asset%2016-1.png?width=300&height=162&name=Asset%2016-1.png "420intel.com")](https://420intel.com) - [Home](https://420intel.com) - [Advertise](https://420intel.com/advertise) - [Directory](https://420intel.com/directory) - [Topics](https://420intel.com/blog) - [Recreational News](https://420intel.com/blog/tag/recreational-cannabis-news) - [Business News](https://420intel.com/tag/cannabis-business-news) - [Politics](https://420intel.com/tag/cannabis-politics) - [Technology](https://420intel.com/tag/cannabis-technology-news) - [Research](https://420intel.com/tag/medical-cannabis-news) - [Contact](https://420intel.com/contact-us) - [Follow us on Facebook](https://www.facebook.com/420intel) - [Follow us on LinkedIn](https://www.linkedin.com/company/420-intel/) - [Follow us on Twitter](https://x.com/420intel) - [Follow us on Instagram](https://www.instagram.com/420intel) ### Press ESC to close [![420intel.com](https://420intel.com/hs-fs/hubfs/Asset%2016-1.png?width=300&height=162&name=Asset%2016-1.png "420intel.com")](https://420intel.com) - [Home](https://420intel.com) - [Advertise](https://420intel.com/advertise) - [Directory](https://420intel.com/directory) - [Topics](https://420intel.com/blog) - [Recreational News](https://420intel.com/blog/tag/recreational-cannabis-news) - [Business News](https://420intel.com/tag/cannabis-business-news) - [Politics](https://420intel.com/tag/cannabis-politics) - [Technology](https://420intel.com/tag/cannabis-technology-news) - [Research](https://420intel.com/tag/medical-cannabis-news) - [Contact](https://420intel.com/contact-us) - [Follow us on Facebook](https://www.facebook.com/420intel) - [Follow us on LinkedIn](https://www.linkedin.com/company/420-intel/) - [Follow us on Twitter](https://x.com/420intel) - [Follow us on Instagram](https://www.instagram.com/420intel) # Advocates Say 24% Tax Will Hurt Cannabis - [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz) - [Cannabis Business News](https://420intel.com/blog/tag/cannabis-business-news) - 1 October 2025 Michigan is at the center of a heated debate as lawmakers consider a new **24% tax** on wholesale marijuana. If approved, Michigan would have the second-highest cannabis tax rate in the nation, behind only Washington. Advocates, business owners, and cannabis workers gathered at the State Capitol to express their concerns, warning that a **24% tax** would devastate an already fragile industry. What the 24% Tax Means for Michigan’s Cannabis Market The new **24% tax** would come in addition to Michigan’s existing 10% excise tax and 6% sales tax that customers already pay at dispensaries. According to the House Fiscal Agency, the **24% tax** could generate more than $420 million annually, with revenue earmarked for state infrastructure projects like roads. However, opponents argue that the **24% tax** will come at the expense of small businesses, workers, and consumers. Fears of Job Losses and Black Market Growth Cannabis workers and dispensary owners told lawmakers that the **24% tax** would drive up retail prices, forcing many customers to turn to the black market for cheaper, unregulated products. Critics stressed that this shift would undermine public safety by increasing the circulation of untested cannabis. One advocate explained that consumers “are not going to be able to afford to buy from a retailer that’s been tested and trusted. The **24% tax** is going to send everybody back to the street, which will un-regulate everything and create more crime.” Impact on Small Cannabis Businesses Smaller operators say the **24% tax** would crush their ability to compete. Unlike larger, multi-state operators, small dispensaries and local growers don’t have the financial cushion to absorb the added cost. Many predict widespread closures if the **24% tax** passes.   Lawmakers Defend the 24% Tax Supporters of the measure argue that the **24% tax** is necessary to raise revenue for critical infrastructure improvements. With roads and bridges in need of repair, lawmakers see cannabis as a reliable source of funding. They claim the industry is strong enough to withstand the new rate, pointing to the billions in legal sales since legalization. Final Thoughts As the Senate prepares to vote, Michigan’s cannabis community remains on edge. The **24% tax** could reshape the state’s marijuana market, either by creating a stronger revenue stream for public projects or by crippling small businesses and fueling black market activity. For now, all eyes are on Lansing as lawmakers decide whether the **24% tax** will become a reality.   [by Youtube](https://www.youtube.com/watch?v=2zgadxXwAdU) [Cannabis Business News](https://420intel.com/blog/tag/cannabis-business-news) ![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=200&height=200&name=Buzz-No%20Outline-2.png) #### [Buzz](https://420intel.com/blog/author/buzz) At 420 Intel, we cover cannabis legalization news throughout the world, offer reliable information for cannabis business owners, detail technological advances that impact the marijuana industry, cover marijuana rallies from across the globe, and everything in between. - - - [Cannabis Business News](https://420intel.com/blog/tag/cannabis-business-news) [![As Marijuana stigma fades, 1 in 4 older Michiganders say they use Pot](https://420intel.com/hs-fs/hubfs/Imported_Blog_Media/As%20Marijuana%20stigma%20fades%2c%201%20in%204%20older%20Michiganders%20say%20they%20use%20Pot.jpg?width=550&height=395&name=As%20Marijuana%20stigma%20fades%2c%201%20in%204%20older%20Michiganders%20say%20they%20use%20Pot.jpg)](https://420intel.com/blog/marijuana-stigma-fades-1-4-older-michiganders-say-they-use-pot) - [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz) - 16 September 2024 #### [As Marijuana stigma fades, 1 in 4 older Michiganders say they use Pot](https://420intel.com/blog/marijuana-stigma-fades-1-4-older-michiganders-say-they-use-pot) Older Michiganders Embrace Cannabis, but Some Face Risks of Dependence. Whether it’s to “feel... [Cannabis Business News](https://420intel.com/blog/tag/cannabis-business-news) [![Michigan’s Budget Showdown: Deal or No Deal?](https://420intel.com/hs-fs/hubfs/frankie-cordoba-6b0Da2obgeo-unsplash.jpg?width=550&height=395&name=frankie-cordoba-6b0Da2obgeo-unsplash.jpg)](https://420intel.com/blog/michigans-budget-showdown-deal-or-no-deal) - [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz) - 26 September 2025 #### [Michigan’s Budget Showdown: Deal or No Deal?](https://420intel.com/blog/michigans-budget-showdown-deal-or-no-deal) LANSING — A major agreement in the state capital is reshaping **Michigan’s Budget** for the coming... [Cannabis Business News](https://420intel.com/blog/tag/cannabis-business-news) [![Michigan cannabis prices hit another record low, but industry believes turnaround imminent](https://420intel.com/hs-fs/hubfs/AI-Generated%20Media/Images/An%20image%20of%20Michigans%20cannabis%20market%20showing%20a%20significant%20drop%20in%20prices%20due%20to%20product%20oversupply%20and%20illicit%20market%20infiltration.jpeg?width=550&height=395&name=An%20image%20of%20Michigans%20cannabis%20market%20showing%20a%20significant%20drop%20in%20prices%20due%20to%20product%20oversupply%20and%20illicit%20market%20infiltration.jpeg)](https://420intel.com/blog/michigan-cannabis-prices-hit-another-record-low-but-industry-believes-turnaround-imminent) - [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz) - 19 November 2024 #### [Michigan cannabis prices hit another record low, but industry believes turnaround imminent](https://420intel.com/blog/michigan-cannabis-prices-hit-another-record-low-but-industry-believes-turnaround-imminent) The price compression is largely attributed to product oversupply, but the illicit markets also... - [Follow us on Facebook](https://www.facebook.com/420intel) - [Follow us on LinkedIn](https://www.linkedin.com/420intel) - [Follow us on Twitter](https://twitter.com/420intel) - [Follow us on Instagram](https://www.instagram.com/420intel) Back to Top ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Buzz", "url" : "https://420intel.com/blog/author/buzz" }, "dateModified" : "2025-10-01T13:31:25.390Z", "datePublished" : "2025-10-01T11:15:05.000Z", "headline" : "Advocates Say 24% Tax Will Hurt Cannabis", "image" : [ "https://420intel.com/hubfs/elsa-olofsson-G_nKIjoL9sE-unsplash.jpg" ], "mainEntityOfPage" : { "@id" : "https://420intel.com/blog/advocates-say-24-tax-will-hurt-cannabis", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://420intel.com/hubfs/Asset%2016.png" }, "name" : "420 Intel" } } ```