Michigan Enacts 24% Marijuana Tax to Fund $420M Road Repairs Amid Industry Protests

Michigan lawmakers have passed a bill proposing a 24% wholesale tax on marijuana sales, intended to raise approximately $420 million annually for road and infrastructure repairs, starting January 1, 2026. This tax would be in addition to the existing 10% retail excise tax, making Michigan's total cannabis tax one of the highest in the country and potentially increasing retail prices by 25-50%. Cannabis industry representatives, workers, and some Democratic lawmakers have protested the tax, warning it could stifle industry growth, cause job losses, and push consumers toward the illegal market. Governor Gretchen Whitmer initially proposed an even higher tax, but legislators are reportedly working to reduce the rate before the final vote. While the bill passed the House with bipartisan support, it still requires Senate approval and the governor's signature to become law. The controversy highlights the tension between funding public infrastructure and supporting the burgeoning cannabis industry in Michigan.