The 24% wholesale tax on cannabis, passed last year by Michigan lawmakers, generated far less revenue in its first quarter than anticipated. The Detroit News reports.
Lawmakers drafted legislation to fund road construction and repairs in the state, and the nonpartisan House Fiscal Agency estimated the 24% wholesale tax would generate about $420 million a year. The state received less than $34 million in the first few months of the new tax, less than a third of quarterly expectations.
Michigan Cannabis Industry Association (MICIA) argued last year that the wholesale tax was unconstitutionally messing with the cannabis framework approved by voters, but the courts refused to block the tax from taking effect on January 1.
“Our elected leaders made the cannabis industry a sacrificial lamb to have the illusion of a road funding fix,” MICIA executive director Robin Schneider said in the report.
“In reality, the only thing they’ve accomplished is the destruction of a strong industry that served as an economic driver for this state. The result is closing businesses, losing jobs, and stripping local governments of tax revenue.” – Schneider, via The Detroit News
The trade group presented a the second lawsuit challenging the wholesale tax on cannabis in March.
