Massive Tax Increase on Marijuana Sales Hits Now!

LANSING, MI – Michigan lawmakers face a crucial deadline today as they race to finalize the 2026 state fiscal budget. Without an agreement, the state risks a government shutdown on Wednesday. At the center of negotiations is a proposed tax increase that could reshape the state's booming cannabis industry, specifically targeting marijuana sales.

Governor Gretchen Whitmer, Speaker Matt Hall, and Senate Majority Leader Winnie Brinks recently announced a budget framework agreement. However, one major sticking point remains: whether to include a tax increase on the state's marijuana market. State Senator Jonathon Lindsey of Coldwater voiced concern in a Facebook video, warning that the proposed tax increase could be devastating for Michigan's cannabis economy.

Michigan currently imposes a 16% tax on marijuana sales, split between a 10% excise tax and a 6% sales tax. This structure has fueled a steady stream of revenue, with marijuana sales generating approximately $3.5 billion annually. A significant portion of this comes from out-of-state buyers who cross into Michigan for cheaper cannabis products. According to Lindsey, another tax increase could risk driving those customers away and shrinking overall marijuana sales.

Proponents of the tax increase argue that additional revenue from marijuana sales could help fund vital state programs, infrastructure, and education. Opponents counter that Michigan's competitive edge in cannabis pricing relies on keeping marijuana sales affordable, especially compared to neighboring states.

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