Michigan cannabis group urges appeals court to intervene before 24% tax takes effect - Detroit Metro Times

Michigan cannabis industry group seeks high court intervention to block 24% wholesale tax.

The Michigan Cannabis Industry Association (MiCIA) has urged the Michigan Court of Appeals to step in before a new 24% wholesale tax on marijuana takes effect on January 1, arguing that the tax is unconstitutional. The trade group filed an application for leave to appeal earlier this week, with MiCIA spokesperson Rose Tantraphol stating that the court's previous ruling declining to block the tax was "the wrong call."

The Michigan Cannabis Industry Association (MiCIA) claims that lawmakers have violated the state constitution by pushing a 24% wholesale tax on cannabis through without obtaining the required three-quarters supermajority. The group argues that any changes to voter-approved laws require such a majority vote, citing the 10% excise tax and 6% sales tax approved by voters in 2018.

The association has sued the state over the tax, claiming lawmakers used a "shell bill" to change the measure's purpose during the legislative process. A recent court ruling rejected two of MiCIA's constitutional arguments but left a third issue unresolved. As a result, the group is seeking an appeal from the Court of Appeals.

The proposed tax is seen as potentially devastating for the state's cannabis industry, which has already struggled with oversupply and falling prices. Industry leaders warn that adding the 24% wholesale tax will push Michigan's legal cannabis prices close to those in California, where high taxes have driven consumers back underground.

Tantraphol emphasizes the importance of blocking the tax, stating that it would harm an industry that has created thousands of jobs and generated significant revenue for the state. She warns that businesses would close, neighbors would lose jobs, and the state's Senate Fiscal Agency predicts a 14% decrease in total sales due to market elasticity.

In contrast, California Gov. Gavin Newsom recently signed a bill to roll back a 25% tax increase on recreational cannabis following concerns over high taxes driving legal businesses into the unregulated market.

I'm not sure if MiCIA's decision to take their case to the high court is the best move... I mean, the state has already been pretty vocal about wanting to regulate the industry and make some changes . A 24% wholesale tax isn't ideal, but it's not like they're asking for much... just a fair shot at competing with California prices . The argument that lawmakers didn't get a three-quarters supermajority is a bit murky - I'm not sure if MiCIA has a solid case there. And the whole "shell bill" thing seems a bit dodgy too . I do think the industry's struggles are real, though... thousands of jobs at stake and all that . Still, I'm not convinced it's worth tying up the high court with this one... time will tell, I suppose .

I'm really rooting for MiCIA here . I mean, think about it, if they succeed in blocking this 24% wholesale tax, it's gonna be a huge win for Michigan's cannabis industry . All those jobs and revenue the state's already seen from cannabis sales would get to keep on flowing, maybe even create some more . And, let's be real, who wants to see businesses close because of a tax that's just too steep? Not me, that's for sure . Plus, California's example is like, proof that high taxes can have serious consequences... so it's gotta be worth a shot for Michigan to try and avoid that . Fingers crossed for MiCIA!

just thinkin about it... if they pass that tax in michigan... it's gonna be a disaster for the industry . i mean, california is already strugglin' with high taxes and people goin underground... now they wanna add another 24% on top? that's just brutal . i get why miCIA is fightin back, but at the same time, lawmakers did kinda bend the rules a bit by pushin it through without a supermajority vote . maybe they're just tryin to make up for lack of revenue elsewhere... but still, thousands of jobs and millions in revenue on the line? that's too much to gamble with .

I gotta say, this whole situation with Michigan's cannabis industry is kinda wild . On one hand, you got these lawmakers who think they can just slip in a new tax without getting the required supermajority vote, and that's some shady stuff . But on the other hand, I'm not convinced it's entirely their fault either... I mean, we all know how California turned out after Gavin Newsom signed that bill to roll back the 25% tax increase . If Michigan is worried about a 24% wholesale tax pushing the industry underground, maybe they should've thought of that before they passed it without proper oversight .

I think MiCIA's got some legit concerns, but at the same time, I don't blame them for trying to fight it. The cannabis industry has created so many jobs and generated revenue, but if a few big changes come in without due process... yeah, that's not gonna sit well with anyone . It's all about finding that balance between regulating industries and giving them the space to grow .

I'm telling you, something fishy is going on here . This whole thing with the 24% wholesale tax in Michigan just doesn't add up. The government's trying to squeeze out every last penny from the cannabis industry, and they're using some pretty shady tactics to get it done . I mean, what's with this "shell bill" business? Sounds like a bunch of behind-the-scenes wheeling and dealing that's not transparent at all .

And let's be real, folks. This tax is going to have some serious ripple effects on the industry as a whole . The government claims it'll just drive businesses underground, but I'm not buying it (pun intended) . There's gotta be more to this story than meets the eye...

u know i think its kinda weird that michigan is goin through this rn... theyre already tryin to keep the cannabis industry alive, and now they wanna slap a huge tax on it? like, dont get me wrong, taxes are important, but 24% feels like a lot for such a new industry. i feel for the businesses and people who rely on it for jobs and income... its like, they're just tryin to make ends meet, you know? but at the same time, i can see why lawmakers might want more revenue... we all need a little extra cash in our lives

Ugh, this new 24% wholesale tax is gonna be a disaster for Michigan's cannabis industry! The state's already got enough problems with oversupply and falling prices... adding more to the mix just isn't fair . I mean, I get it, lawmakers want to raise revenue, but come on, you can't just slap on a massive tax like that without considering the impact on businesses and jobs .

I'm loving California's example here - they rolled back their tax increase after realizing it was driving consumers underground . Michigan should take note! Thousands of people are already working in this industry... let's not jeopardize those livelihoods . The state's Senate Fiscal Agency is already predicting a huge decline in sales... this tax is just gonna be a recipe for disaster .