LANSING, Mich. – A fierce debate is brewing in Michigan as lawmakers consider a major tax hike on marijuana. At the center of the controversy is a proposed 24% tax on wholesale cannabis, a move Governor Gretchen Whitmer says would help fund road repairs under her “pot for potholes” plan.
If approved, the 24% tax would replace one of the lowest marijuana tax structures in the country. Lawmakers argue the tax hike would generate millions for infrastructure projects, but cannabis workers, shop owners, and consumers warn the plan could devastate the industry.
Industry Pushback
For many in the cannabis community, the proposed 24% tax feels like a direct attack. Tasha Brickley, a budtender at The Cake House, explained her frustration: “I don’t think it’s our responsibility to pay for the roads. Marijuana was illegal to begin with, and now that it’s legal, they see it as a billion-dollar industry and want a tax hike.”
Alejandro Vega, sales director at Peninsula Gardens, echoed the concern. He believes the 24% tax could cripple businesses by forcing prices up as much as 50%. “This tax hike could single-handedly destroy the industry,” Vega said. “Producers, retailers, and customers will all feel the impact.”
Consumer Concerns
With the proposed 24% tax, plus Michigan’s 6% sales tax, that same order would jump to $142. Consumers fear this tax hike will not only make cannabis less affordable but also push people back toward the black market.
Brickley, who also uses marijuana for medical purposes, worries about accessibility. “This isn’t just about business; for many people it’s medication. A 24% tax makes it harder to get what we need legally,” she said.
Lawmakers Divided
House Representative Joe Aragona voted in favor of the tax hike but admitted it was a difficult decision. He argued that while the 24% tax is significant, the package also includes measures to crack down on the black market, something cannabis advocates have long demanded.
Still, critics believe the tax hike outweighs any benefits. They argue that rather than stabilizing the industry, a 24% tax could reduce legitimate marijuana sales and undo years of progress toward legalization and regulation.
What’s Next?
The bill has passed the House and awaits a Senate vote. Meanwhile, cannabis workers and consumers plan to protest at the Michigan Senate Building, hoping to stop the proposed tax hike before it becomes law. Whether lawmakers proceed with the 24% tax will determine the future of Michigan’s marijuana market—and possibly set a precedent for other states.
