Michigan cannabis will soon become some of the most heavily taxed in the United States after state lawmakers approved a new 24% wholesale tax early Friday.
That’s on top of an existing 10% excise tax and a 6% sales tax in the $3.2 billion market, which operators now fear will shrink as consumers are driven to seek cheaper alternatives, including on the illicit market.
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The tax increase is part of Michigan’s $75 billion budget that the state Legislature approved after midnight Friday morning.
Tax backers, including Gov. Gretchen Whitmer, say the marijuana tax will raise $420 million that will go toward rebuilding bridges and roads.
Several states have raised cannabis taxes this year amid a slowing economy and federal budget cuts.
However,
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