Sep 12, 2025
As Michigan’s budget impasse continues, MIRS reports that proposals “such as a $470 million new wholesale marijuana tax, [and others] … are all ideas the Senate D's are moving toward.” Earlier this year, Gov. Gretchen Whitmer (D) proposed a massive 32% wholesale excise tax on cannabis, in addition to the current burden of 16% at retail.
Cannabis is already taxed at a far higher rate than alcohol. Michigan taxes wine at 13.5 cents per liter, about 1% for a $10 bottle, plus standard sales taxes. Michigan’s cannabis consumers, many of whom use cannabis as a medicine, should not have to shoulder a massive new tax burden.
Roughly doubling the tax burden on cannabis would also strike another blow to Michigan’s small cannabis businesses, which are already struggling. This will drive demand underground, to the intoxicating hemp market, and even across the border to Ohio — which has a 15.75% tax rate.
Cannabis consumers already pay more than their fair share in taxes — at an amount that was set in the voter-approved initiative. Cannabis consumers shouldn’t be singled out to shoulder the burden for fixing Michigan’s roads.