Hundreds of advocates have rallied in Lansing in recent days in opposition to a proposed 24 percent tax hike on adult-use marijuana products.
Last week, members of Michigan NORML, MPP, and other advocacy organizations met with state lawmakers to voice their opposition to the tax increase, which House lawmakers approved as part of a broader budget bill. This week, hundreds of activists rallied at the state capitol in protest of the proposal.
Senators have yet to act on the bill, but they need to pass a budget within the next seven days or risk a state government shutdown.
The proposal imposes a 24 percent tax on the wholesale price of marijuana sold or transferred to a retail shop. (Initial plans proposed a 32 percent tax hike.) That’s on top of the existing 10 percent excise tax on retail marijuana sales, in addition to the state’s 6 percent sales tax. If enacted by lawmakers, the new tax would take effect on January 1, 2026. One of the state’s largest cannabis trade organizations in considering suing the state over the proposal, arguing that it improperly amends the state’s voter-initiated law.
“Raising taxes on adult-use cannabis products will escalate prices out of reach for many consumers,” states NORML in an action alert that has been shared with state lawmakers nearly 3,000 times. “This will drive a growing percentage of consumers to the unregulated market, thereby undermining the primary goal of legalization, which is to provide adults with safe, affordable, above-ground access to lab-tested products of known purity, potency, and quality. This proposed tax increase will also hurt state-licensed businesses and their employees because it will increase their costs and reduce their customer base.”
An estimated 40,000 Michiganders work in the state’s cannabis industry. In 2024, excise taxes imposed upon the industry raised over $330 million in new tax revenue.
Earlier this month, a legislative effort led by California NORML successfully rolled back marijuana-related taxes in that state. By contrast, lawmakers in Maryland and Minnesota both enacted cannabis-related tax hikes this year.
NORML’s legislative action alert opposing the proposed tax hike is available online.
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