Michigan Bill seeks to repeal 24% wholesale cannabis tax 

A bill introduced in Michigan seeks to repeal the state’s 24% wholesale cannabis tax, 6 News reports. In a statement, Republican State Rep. James DeSana, the bill sponsor, called the tax an “unnecessary burden” on the industry and said that eliminating it would reduce supply chain costs and better allow the legal market to compete with the illegal market. 

“Government should not stand in the path of a market that is competitive with excessive taxation.” Repealing wholesale tax will help Michigan businesses and consumers. It also encourages legal market participation. — DeSana, in a press release, via WLNS 

 DeSana told 6 News that he believes the tax was “deceitful” and that those who backed the tax knew it “wasn’t going to come anywhere near the $410 million projected.” According to the State Budget Office, from the date tax took effect – January 1 – through April 30, the tax generated $34 million, which is far below the $105 million per quarter the House Fiscal Agency had estimated.  

DeSana said to 6 News: “I thought the analysis was dishonest. “I don’t think it was right to impose a wholesale tax only on one segment of the market. There are many other ways this market functions.” 

The proposal is currently in the House Committee on Appropriations. 

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