The Michigan Court of Claims heard arguments Tuesday over the constitutionality of a new 24% wholesale tax on cannabis products, a measure that has sparked significant backlash from the state’s legal marijuana industry.
The tax, set to take effect on Jan. 1, was passed as part of Michigan’s fiscal 2026 budget to raise $420 million to fund road repairs and infrastructure projects.
However, critics say the tax, timed with an oversupply of cannabis and a saturated retail market, could send the second-biggest legal market in the U.S. into a tailspin.
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Judge Sima Patel, who presided over the hearing, said she expects to issue a decision soon.
The case is expected to progress to the Michigan Supreme Court, regardless of the outcome.
Cannabis tax
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