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Michigan 24% Weed Tax Faces Court Challenge!
A Michigan Court of Claims judge in Detroit will hear arguments Tuesday on whether a controversial new tax on marijuana was adopted in violation of the state Constitution.
The 24% wholesale tax on cannabis was the linchpin of a budget deal that was adopted last month by the Legislature and signed by Governor Gretchen Whitmer. The recreational marijuana industry sued because a voter-approved ballot initiative already imposed a retail tax on cannabis.
"This was an unconstitutional move. End of sentence. Full stop," said Rose Tantraphol, spokesperson for the Michigan Cannabis Industry Association. She said the Legislature could not add a new wholesale marijuana tax on top of the existing tax on retail cannabis sales without supermajority votes.
"When the state Legislature passed this law imposing a 24% wholesale tax on cannabis, it did so in violation of provisions in the state's constitution," she told Michigan Public Radio. "Lawmakers used a Trojan Horse process during chaotic middle-of-the-night actions to ram this legislation through."
The cannabis industry lawsuit says the initiative is supposed to help develop a legal recreational marijuana industry, while the new wholesale tax will force cannabis retailers to shutter.
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