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Michigan Judge Allows Marijuana Tax Increase To Take Effect Despite Industry Lawsuit

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6 months ago

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Cannabis industry groups argued that the tax violates the state Constitution by amending a voter-approved legalization law without following due process.

By: Ben Solis, Michigan Advance

A group of cannabis industry advocates failed to convince a Michigan Court of Claims judge that it would suffer irreparable harm. A new 24 percent wholesale tax on marijuana went into effect To fund future road repairs in the state.

In an opinion issued Monday, Court of Claims Judge Sima Patel said Holistic Research Group Inc./Michigan Cannabis Industry v. That the Michigan Department of Finance was denying plaintiffs’ request for a preliminary injunction.

The joint lawsuits said the new tax was approved in October as part of a comprehensive budget deal for 2025-26. Raising new revenue for road repair and reconstruction Until 2030, because it was against the Constitution violated the title-object clause of the state Constitution.

Patel said Monday, after hearing oral arguments on the case in November, that the industry’s advocates had failed to argue that there was a genuine constitutional issue, nor had the group briefly shown that the Michigan Marijuana Regulation and Taxation Act, which legalized the use and sale of cannabis in Michigan, was the only legal mechanism for taxing the flower.

“(The road funding act) is consistent (with the marijuana tax law). Plaintiffs say the phrase ‘all other taxes’ … refers only to generally applicable taxes, like the 6 percent sales tax imposed on all retail sales,” he wrote. “If that were true, however, the initiative could have simply said that. Instead, the initiative clearly stated that the 10 percent retail excise tax was in addition to ‘all other taxes.’

Patel also pointed out that the Legislature did not directly change any of the existing taxes in the regulatory act, nor replace them with the new tax in the road funding legislation; rather, the Legislature established a new separate tax, which is allowed under the governing law.

“The two statutes can be read together,” Patel wrote.

So the claim about the mechanism by which a new tax could be imposed was dismissed, Patel wrote.

Patel, however, allowed the case to go forward to determine whether the tax interferes with the intent of the voter-initiated law that allowed the consumption, regulation and sale of marijuana. Patel said there remained a genuine issue in the matter, which required further consideration by the court.

“The court must consider the intentions of the (tax act) drafters and the effect of the new wholesale excise tax on the (tax law’s) objectives,” Patel wrote. “The court will not be able to resolve these questions of fact at the summary disposition stage. Discovery will be necessary to develop the evidence necessary to support the parties’ positions.”

This story was first published by the Michigan Advance.

Photo elements courtesy of the user rawpixel and Philip Steffan.

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More flexibility to manage light, condensation and UV with extended Solarweave range

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20 hours ago

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June 18, 2026

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For over 50 years, Solarweave has been a woven covering solution for greenhouse and polytunnel applications. First introduced in the 1970s, it was developed as a sustainable alternative to plastic films and is recognized for its long life, strength and consistent performance.

Designed and manufactured in Australia, Solarweave is designed to withstand demanding growing environments, including high temperatures and high winds. Today, it is used worldwide in many protected cropping systems.

Building on this heritage, GALE Pacific has expanded the Solarweave range with the new D40 and D60 variants, giving growers greater flexibility to manage light, condensation and UV exposure while maintaining the durability that Solarweave is known for.

© GALE Pacific

Light performance optimized for modern grow systems
The extended Solarweave range allows growers to select the right balance of light properties and anti-drip performance for different crops, climates and structures.

Solarweave D40 and D60 gradually increase fog, light diffusion and UV protection. This allows more light to penetrate through the crop canopy and helps reduce plant stress and disease risk in greenhouse environments.

Long life for stronger life value
Unlike plastic films that often need to be replaced every few seasons, Solarweave is used for 15 years or more in greenhouse and polytunnel applications.

This extended service life reduces replacement frequency, labor requirements and downtime during the life of the structure. When evaluated over time, many growers believe Solarweave provides a greater return on investment by avoiding the recurring costs and downtime associated with film replacement and disposal.

Built for real-world production
Solarweave is repairable, allowing localized damage to be repaired on site rather than replacing the entire coating. This is a practical advantage for continuous commercial growing operations.

With decades of proven performance, Australian manufacturing expertise and a wide range of options, Solarweave continues to evolve while remaining a reliable solution for long-lasting greenhouse covers.

For more information:
GALE Pacific
Email: (email protected)
galepacific.com/

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Michigan Lawmakers Take Up Bill To Cap Marijuana Business Licenses As Industry Reels From Tax Increase

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20 hours ago

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June 18, 2026

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“We’re doing everything we can to create the right regulatory framework so that the market can be properly served.”

By: Ben Solis, Michigan Advance

The Michigan Senate is retooling marijuana industry license cap legislation to include new barriers to obtaining a license for growers, processors or dispensary operators with significant industry-related tax debt. help boost the industry as it faces a new 24 percent wholesale tax.

The Michigan Senate Rules Committee on Wednesday heard second testimony on recent changes to Senate Bill 597, a bill that proposes new limits on the state’s marijuana industry licenses. The hearing comes almost a year after the bill was introduced and was the subject of the first hearing in October 2025.

Sponsored by Sen. Sam Singh (D-East Lansing), SB 597 would limit the licensing of marijuana dealers and wholesalers per 10,000 residents in a municipality starting Jan. 1, 2026. The move would be similar to how the state regulates liquor sales, Singh said last year.

SB 597 it is also part of a larger package. Senate bills 599–602 It aims to create a regulatory framework for consumer hemp products in Michigan. That portion was primarily sponsored by Sen. Dayna Polehanki (D-Livonia) and was introduced as a way to regulate intoxicating hemp products, including Delta-8 and other synthetic cannabinoids, sold at Michigan gas stations, convenience stores and online marketplaces.

Those pieces passed the Democratic-controlled Senate late last year and are now in the GOP-led House. The license cap piece is still being worked on in the Senate.

Singh’s testimony Wednesday served to refresh the committee’s memory on the legislation and examine the details of the newly adopted bill language.

One of the biggest changes is that licensees must pay all state taxes when seeking another license. It would require the potential licensee to refund the basic tax, fees and tax penalties owed. Singh said the change would align with the way the marijuana industry controls and regulates liquor licenses in Michigan.

The senator said a problem currently facing the Cannabis Regulatory Agency is that it does not have the ability to deny an applicant a new license if that applicant had a previous license, but closed it while owing various state industry taxes, including a required excise tax.

Under the current regulatory framework, a licensee could close their existing license and not have that tax debt continue while they seek a new license because the CRA lacks a mechanism to stop that process because of the tax owed.

Singh said that was more important than ever given how the Legislature added a new 24 percent wholesale tax in the 2025-26 budget deal. The Legislature appropriated $420 million annually in road funding. The the industry is currently fighting that tax in courtas its stakeholders argue, tax will A wholesale marijuana tax generating less revenue than anticipated.

Recent reports indicate that the industry’s struggles have intensified as tax revenues have fallen short of expectations, according to to The Gander.

“Now that we have a wholesale tax of 24 percent, I could see that becoming more and more of an issue,” Singh said. “If we want to make sure that the income is stable, and again, those incomes may be a little low to begin with, we have to make sure those protections are there.”

The updated language includes a provision to place a moratorium on new grower licenses, but allows current growers to obtain an additional license to build and expand. Singh said this was also done to stabilize the market.

Another change concerns the return of products.

“We heard from the Hazkai community that currently, within the law, there is no policy on how to return the product,” Singh said. “What we’ve heard from wholesalers is that some people are returning products weeks, even months, after they’ve received them. So they’ve asked us to find a way to deal with returned product. What our bill basically does is you have three days to return the product, and it has to be in the original packaging and in the original packaging.”

The committee took no further action on the bill.

After the hearing, the Michigan Advance asked Singh if changes to the state’s new wholesale tax did not generate the revenue the Senate and House had hoped to pass.

Singh said this was not a reaction to the problems with the tax.

“We’ve been working on this, these sets of issues, since April of last year. When you have an initiative approved by the voters, there are often things they’ve never thought about, especially on the regulatory side, on the enforcement side,” Singh said. “We are doing everything we can to create the right regulatory scheme to ensure that the market is properly filled, to ensure that the product is safe for those who will use the product, but at the same time to ensure that everyone pays their taxes.”

Whether the bill will help ensure more licensees pay the appropriate tax, Singh said the Legislature, the state and its marijuana industry peers will have to wait and see.

“I always share my personal concern that this tax was higher than it should have been. I think there could have been a combination, with a tax on special increases on the retail side, and maybe a lower wholesale tax,” Singh said. “But at this point, I think it’s too early to gauge where we’re going to be. I think after a couple of quarters, we’ll know what those revenues are going to look like as we go forward.”

This story was first published by the Michigan Advance.

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Massachusetts CCC pauses license applications

Published

2 days ago

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June 17, 2026

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The Cannabis Control Commission, the government body that oversees the marijuana business in the state of Massachusetts (USA), has decided to temporarily stop accepting new license applications for growing marijuana, both indoors and outdoors. This hiatus officially began on June 16, 2026.

Anyone planning to apply for a new marijuana cultivation license after June 16, 2026 will not be able to do so while this suspension is in effect. The Commission will not accept such requests during this period.

There are two groups that can continue normally. First, anyone who submitted an application before June 16, 2026, will continue to review and process applications as usual. Second, applicants for specific programs designed to help communities historically affected by drug laws, known as the Social Equity Program and the Economic Empowerment Program, are exempt from this suspension if they apply for a smaller-scale “Microenterprise” license.

The suspension will be in effect for 120 days from June 16, 2026, which is currently scheduled to be lifted around mid-October 2026. However, the Commission has the power to terminate earlier or extend further, depending on market conditions.

Source: Massachusetts Cannabis Control Commission










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