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New Michigan Marijuana Tax Could Shutter Businesses And Actually Reduce The State’s Cannabis Revenue, Industry Says

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9 months ago

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“If you put more tax burdens in these companies … they will start leaving business. If there are no more business in this industry, who go to collect taxes?”

Kyle Davidson will advance Michigan

When the national budget negotiations came nearby, members of the Democratic-LED Senate and the Republic houses were able to achieve additional financing for road repair, attracted many discussions through a plan: Collection of additional taxes in marijuana.

Hundreds of people He appeared against the Cannabis Industry Proposal Last week, gathering Capitol grass and building rooms, legislators worked to end the State Budget.

While protected by the policy on both sides of the corridor, some legislators were very bipartids.

Michigan Gov. Gretchen Whitmer (d) put the feather tax on Tuesday, the future of the law has already been challenged Michigan Cannabis Industry Association presents complaint on the same dayAccording to misrepresenting the law, the law initiated by the voters agreed to legalize Marijuana in 2018.

Browse new tax

According to the new policy, on January 1, 2026, the marijuana is planned to be the first sale or transfer between a business and a shop. If a seller has been cultivated or processed by his marijuana, the Michigan Treasury department will receive a tax for sale by sale and processes of marijuana based on wholesale price.

Denise Pollicella, Omnus Law, a lawyer who works with customers in the Cannabis industry, said that the tax will be managed, the rate for companies that produce retail products, to differentiate the department of the Treasury established by the law.

The use of adult tax use in the industry, not applied to CBD, hemp or medical marijuana products.

However, Pollicell stressed that the tax will touch each part of the industry, as marijuana businesses have risen prices to compensate for additional tax.

If the price of recreation marijuana is significantly increased to cover the price of the tax, the time consumers will reach more expensive in the black market to get marijuana, Pollicella said

“It is one of the greatest complaints and concerns in the cannabis industry since Michigan, essentially not to stop marijuana traffic, or because teeth should be judged by prosecutors,” Pollicellell said.

The unregulated market in Michigan was never going, Pollicella said, even if it will shrink and reduce customers to better alternatives, such as safe and accessible marijuana.

“They are always two things we have struggled and accessible, the lab is tested, so you know that it is not fentanyl or cat hair or mold, you know,” Pollicella said. “And so it is accessible, so a person who wants to try, can be included in a commercial commercial trade facility in a commercial municipality, with a safe and experiencing experience and access to a variety of marijuana products.

In a Michigan progress email, Danny Wimmer said the General Lawyer’s Spokesperson.

“The criminal statutes that protect the inhabitants of these practices are noticeable,” Michigan calls Michigan regulations and tax reasons is not enough to punish illegal growth operations and in incompatible with the legal lawsuit of the current legal marijuana.

The department also knows that international criminal organizations are traveling to Michigan specifically due to the law of State Laws, Wimmer said.

Aside from black market concerns, Pollicella also expressed a tax burden caused by marijuana business.

“If you put more tax burden on these companies, and there are no permission to renew licenses, start going out of business,” Pollicell said. “If there are more businesses in this industry, who collect taxes to collect taxes?”

Marijuana is illegal at the federal level, which marijuana business owners are banned by taking advantage of tax breaks to save the cost of goods. Pollicellell explained that this exception helps grow and process facilities that retailers are taking on his chin.

Federal laws also receive protection against marijuana businesses and have insurance rates that charge other businesses, Pollicellell said.

In addition, the state charges 10 percent tax collected in the store with a sales tax on 6% of the state.

“Retail facilities are very thin margins right now,” Pollicella said. “I have a lot of customers who are small operators, and others may not have five financial scale, they don’t make a big scale to bear this.

On taxes, the industry already pays statue and license rates, Pollicella said marijuana businesses also have $ 100,000 fees and fines that can be fined regulation fees and fines.

“It’s very expensive to be in this industry and have a license,” Pollicell said. “Houses and the Senate passed this bill, knowing what’s the burden of industry or not having curiosity to know what kind of this industry was responsible for what it was.”

Impact

Jerry Millen is owned by the greenhouse of the lake of the wall, the first medical and recreation of the County County of Oakland. The store plays a more mature customer, Millel said he was an average of 44 years old.

“We respond to the elderly. We have a lot of young people who come every day,” Millel said.

In a conversation with advancement on Tuesday, Millen retreated only by playing new taxes “regattas” and “Weedheads”, emphasizing marijuana medicinal plants.

“I see them with the main or with arthritic pain. I work with cancer patients,” said Millen. “This product has been seen as a medicine for 15 years, and I would not believe myself. I didn’t first start, until I saw it and until I met people.”

Millen had an excessive 24 percent tax while taking the state money, who does not know the prices for customers who know the tax.

Imagine purchases with 16 percent of marijuana tax on your receipt, and then next one percentage on your bill, said Milel.

“You will lose your self,” he said.

However, 24% tax will not appear in the receipt, which hides the cost behind the store, Millel said.

Kevin May, in Manchester Cannabis, Michigan, Michigan, said. He said that there is no cost to eat the cost, leave the dispensaries and collect the customer cost and spend the cost to the customer.

Pollicella, Millen and all can agree, in terms of new tax, the customer will feel influence.

“That’s not growing or disrespecting, they’re not doing anything yet. However, because the industry is struggling, because he is overseeing people,” he said.

Although patients with a medical marijuana card should not provide a 10 percentage of marijuana sales, Millel said many people have managed to remove their card by legalizing Marijuana play in the state. He warned that the price 24% of the price needed to achieve what they need some marijuana patients.

Millel said that his older customers are not types of black market, a black heating market creates worries for those with minors.

“Those who are against marijuana should also have a problem with this, in the end of the day, the marijuana is legal, it will be sold,” Millel said. “But now that he can respect black markets, which means that your child will probably be safe to have safe products that will be safe. So you should also go against this tax.”

New taxes will also cost people jobs, Millel said: “Mother and pop” breeders, processors and dispensers threaten to get out of business.

47,000 State Cannabis Industry Jobs Approximately 40,000 others that help protect the industry, accountants, lawyers, tax preparers, real estate developers and full bank divisions.

May and Pollicella did not agree that taxes would fully declare the industry within the state, as he agreed that it would lead to the consolidation of the industry.

“There are also some people in this industry: Most of this industry still haven’t returned money,” Pollicell said, underlining tax rises that people will cost people to find jobs.

People placed in the short term can still find people to find jobs to receive successful companies and work in the market left in the market.

Although taxes on taxes can escape customers in communities in the border of the prices, they may agree that people who buy Michigan’s grass with the cheapest national prices.

In limits like Ohio, prices are still high, the product is not sold in high quality and rare quantities.

“I still think the border shops go to Boom,” he said. “If you’re weak and don’t work properly and after your costs are in line, you will have a big problem now.”

This story first published Michigan progress.

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New access solution for cannabis facilities designed to address limitations of traditional gates

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6 hours ago

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June 26, 2026

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SpaceGuard Products, a North American manufacturer of wire mesh security solutions and security protection systems, has released the BeastWire® Tunnel Door. This access solution is designed to overcome the limitations of traditional balanced doors and is aimed at cannabis cultivation, processing, packaging and distribution environments. The BeastWire Tunnel Door is designed for installations that require vertical clearance, reliable movement and floor space efficiency.

The BeastWire Tunnel Door provides top clearance with no tracks in the operating path of the door. It is suitable for spaces where overhead paths are not feasible, such as facilities that use high-mast forklifts, oversized pallet loads or specialized material handling equipment. Tall equipment can pass through the opening unhindered, allowing for continuous workflow and flexibility in equipment movement.

© SpaceGuard Products

The door uses a track system designed to create consistent movement. This addresses issues such as stuttering, binding, and misalignment that can occur with conventional sliding or counterbalanced designs. The track controls the path of the door so that the locking mechanism aligns with each cycle, allowing operators to close the door with relatively low force.

Unlike lower track systems that require a soil trench, the BeastWire Tunnel Door mounts above ground. This avoids cutting the installation slab, simplifies installation and reduces maintenance requirements. The system can be installed as a retrofit or in new construction, without changing the floor.

© SpaceGuard Products

The door frame and retractable design reduces the need for side supports and additional space on the side of the door. This results in a smaller footprint and more usable surface area. The gate has the same construction approach as other BeastWire systems.

The BeastWire Tunnel Door is a high-access door designed for strength and ease of use in cannabis industry facilities.

For more information:
SpaceGuard products
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DEA Defends Stance That Synthetic Cannabis Compound HHC Is Federally Banned In Response To Industry Lawsuits

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6 hours ago

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June 26, 2026

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The Drug Enforcement Administration (DEA) is resisting efforts by two hemp companies to resist the determination that it is a cannabinoid It is illegal synthetically produced from components of the cannabis plant.

The DEA issued a rule last month saying that was already the case made hexahydrocannabinol (HHC) an illegal substance Under the federal Controlled Substances Act (CSA), the agency will now assign the compound its own unique drug code for classification.

That move is being challenged in a series of lawsuits by hemp businesses that say the agency’s decision is “unlawful.”

In addition to filing petitions for review, the companies are also petitioning federal courts to block the agency’s action while the lawsuits proceed.

The DEA, in briefs filed in the cases this week, argued that each applicant “does not meet any of the factors necessary to demonstrate that it should await review.”

“The rule does not affect HHC’s previous status as a Schedule I substance; all it does is list HHC separately and assign it a separate drug code,” the agency’s brief said.

“With or without the final rule, HHC is a controlled substance. Thus, even if this Court stayed the final rule pending review, (companies) would continue to be subject to existing legal and commercial risks for HHC-related actions,” they say, “Contrary, the suspension would undermine the government’s efforts to improve the regulation of HHC, including the permitted amount or approval process for public permits for HHC. Interests also favor a stay, which would create confusion about HHC’s status as a controlled substance.”

HHC can be found in trace amounts in cannabis plants, but it is also synthesized from hydrogenated cannabidiol (CBD). Delta-9 is sometimes sprayed on cannabis flowers that are low in THC, the most well-known psychoactive ingredient in marijuana, and its psychoactive effects are said to be similar.

While the 2018 Farm Bill legalized hemp and its derivatives with less than 0.3 percent delta-9 THC, the DEA says that only applies to naturally occurring cannabinoids, not synthetic ones. Accordingly, the agency’s position is that HHC does not fall within the definition of legal hemp.

One of the pending cases, filed by Bluestar Operations, LLC before the US Court of Appeals for the Fourth Circuit, refers to a prior ruling in that jurisdiction. the hemp-derived cannabinoid THC-O-acetate is federally legal Despite the DEA’s claims to the contrary.

“Congress deliberately used broad statutory language and did not prohibit cannabinoids that are subject to common extraction, refining, conversion, hydrogenation, distillation, or similar manufacturing processes commonly used in the hemp industry,” the complaint states.

The DEA’s move “conflicts with the plain text, structure, and intent of the 2018 Farm Bill and inserts unlawful limitations that Congress neither intended nor enacted,” it says. The agency’s action “has already caused specific and immediate harm to the petitioner, including substantial compliance costs, business uncertainty, reputational damage, disruption of business relationships, and interference with ongoing operations.”

“Congress, not executive agencies such as the DEA, defines the scope of federal criminal liability. The DEA has no authority to curtail Congress’s legalization of hemp-cannabinoids through an interpretive construction that the statutory text does not support.”

Bluestar said in its new response to the DEA’s initial response brief that the agency “cannot defend the merits of treating hemp-derived HHC as a Schedule I controlled substance, which this Court rejected against binding Circuit precedent” in the previous ThC-O-acetate case.

“The respondents have recast the impugned DEA rule as a weightless ‘technical correction’ that harms no one and decides nothing,” he said. “They have then flipped the script by arguing that Bluestar lacks standing to challenge. Respondents can’t have it both ways.”

The other new lawsuit was filed by IHC Investments, Inc. in the U.S. Court of Appeals for the Ninth Circuit, which previously ruled on the federal legalization of hemp through the 2018 Farm Bill. removed the limits on the wide range of molecules produced by the cannabis plant-delta-8 including the psychoactive cannabinoid THC.

The petition states that “the DEA effectively, and therefore unlawfully, attempts to expand federal criminal liability through administrative interpretation that is not supported by the plain statutory text of the enabling legislation.”

“Congress did not prohibit converted cannabinoids, hydrogenated cannabinoids, or cannabinoids subject to common processing techniques,” the complaint states. “Congress did not expressly authorize the DEA to criminalize broad categories of hemp-derived cannabinoids through administrative interpretation.”

Both petitions argue that the DEA’s move last month violates the central question doctrine, which holds that if an agency wants to decide a matter of national importance, that action must be protected by clear authorization from Congress.

The agency’s HHC ban “has enormous economic and political significance affecting the multibillion-dollar nationwide hemp industry,” says the lawsuit brought by Bluestar.

David Sergi, the attorney leading the new Ninth Circuit case for IHC Investments, said in a press release Thursday that the DEA’s action “directly conflicts” with the 2018 federal Farm Bill legalizing hemp and its derivatives.

“The DEA’s ruling has caused immediate and specific harm to hemp businesses across the nation,” he said. “That reclassification has led to immediate cancellation of contracts, loss of banking relationships and potential destruction of important inventory.”

The DEA, for its part, said in a rule it filed last month that “only tetrahydrocannabinols in or derived from the cannabis plant — not synthetic tetrahydrocannabinols — are exempt from regulation as ‘hemp tetrahydrocannabinol.’

“For further clarification, tetrahydrocannabinols produced through chemical conversion, even when considered synthetically produced when derived from hemp for purposes of the CSA, are not classified as ‘tetrahydrocannabinol in hemp'” under the 2018 Farm Bill, the agency said.

The Federal Register notice was not the first time the DEA addressed HHC’s legal status.

In a 2023 letter, Terrance Boos, chief of the DEA’s Drug and Chemical Evaluation Section, wrote: HHC “does not occur naturally in the cannabis plant and can only be obtained syntheticallyand therefore it is not within the definition of hemp”.

The new filing, signed by DEA Administrator Terrance Cole, said, “this rule does not in any way affect the continued status of hexahydrocannabinol as a controlled substance.”

“This action, as an administrative matter, establishes a separate and specific listing of hexahydrocannabinol in Schedule I of the CSA and assigns a DEA drug code to that substance,” he said. “This action will allow the DEA to establish an aggregate production quota and issue individual manufacturing and purchase quotas to DEA-registered manufacturers of hexahydrocannabinol, which were previously issued individual quotas for these purposes under the tetrahydrocannabinol drug code.”

The DEA’s release cited a move it made last year International drug control organizations to add HHC II of the 1971 United Nations Convention on Psychotropic Substances—but the document fails to note that when the Commission on Narcotic Drugs (CND) took the measure, the US was the only country to abstain from voting.

The DEA said the US Department of Health and Human Services (HHS) “conforms to the direct listing and drug code assignment of hexahydrocannabinol in the CSA.”

Meanwhile, under provisions of a large-scale spending bill signed by President Donald Trump late last year, the federal definition of legal cannabis will change in November. If that language does not change or its the effective date has been postponed, as requested by some members of parliamentonly hemp products with a total of 0.4 milligrams of THC per container will remain legal after November 12th.

At the same time, however, the Trump administration is going wider reschedule marijuana under federal lawwith a A DEA hearing on the matter will begin next week.

Read the last one signings in the following cases:

Photo by Mike Latimer.

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Good Behavior dispensary applies to open in Yorkville

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1 day ago

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June 25, 2026

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A cannabis company called Good Behavior is seeking approval from the city of Yorkville, Illinois, to open a dispensary on a 0.93-acre plot along Saravanos Drive, west of South Bridge Street and south of Stagecoach Trail, becoming the latest entrant in a string of cannabis proposals the city has previously rejected. The company has filed a special-use application with the city and is staking its case on the tax revenue a dispensary would generate for Yorkville.

Full details of the application, including projected tax figures, the company’s ownership structure and details of any board discussions, are available to Shaw Local News Network subscribers. The article, reported by Shaw Local News Network’s Joey Weslo and published on June 23, 2026, notes that cannabis companies had previously failed to get city approval before Good Behavior presented its proposal.

The proposed site places the dispensary in a commercial corridor to the south of the city. Good Behavior’s application requires a special use permit from Yorkville before the project can proceed.

Source: local Shaw










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