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.
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.
. 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 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 
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! 
. 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 
.
. It's all about finding that balance between regulating industries and giving them the space to grow 
.
. 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 
.
. There's gotta be more to this story than meets the eye...
.
. 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 
.