Cannabis News
Michigan’s Marijuana Tax Experiment Should Be An Urgent Warning To Other States (Op-Ed)
Published
2 weeks agoon
By
admin
“Other states should also learn from Michigan’s experience, rather than repeating the same economic mistake when faced with a budget deficit.”
By Hirsh Jain, Verdant Strategies
In an effort to raise short-term revenue, Michigan recently adopted a cannabis tax structure that is already proving economically counterproductive and strategically short-sighted.
For many years, Michigan was one of the most successful legal cannabis markets in the United States. The explanation was simple. Michigan, understandably, adopted one of the lowest cannabis tax rates in the country.
The state imposed a 10 percent excise tax on adult use, shared between state and local governments, plus a standard 6 percent sales tax, for a total effective rate of 16 percent. By comparison, California’s cannabis tax burden was twice as high, approaching 40 percent in some cities.
The contrast was stark because California and Michigan share deep histories of medical cannabis. California was the first state in the nation to legalize medical cannabis in 1996. Michigan subsequently developed one of the strongest grower-based cannabis markets in the country in the 2000s and 2010s. Both states built strong cultural and political foundations around the idea that cannabis is medicine.
When it came to legalizing adult use, however, the two states went in different directions.
Michigan largely believed that cannabis should be treated as a medicine rather than a vice. He adopted a moderate tax structure that kept legal prices competitive. California, in contrast, imposed heavy taxes and regulatory costs that treated cannabis as a luxury or vice product rather than a therapeutic good.
Predictable results followed.
Michigan’s relatively modest taxes drove consumers out of the illegal market and into licensed stores. Legal sales rose quickly, reaching about $3.3 billion annually in a state of just 10 million people.
California’s market has hovered around $4 billion in recent years, despite nearly quadrupling its population. Per capita, Michigan became one of the strongest adult cannabis markets in America, while California became the weakest, driven by tax policies.
In July 2025, industry analytics firm Headset stated: “What’s so surprising about Michigan’s pace of sales is California’s population difference. With a population of 10 million, Michigan is on the verge of usurping America’s largest state, California, with a population of nearly 40 million.”
Cannabis became a major driver of employment in Michigan. According to industry recruiting firm Vangst, 47,000 Michiganders were expected to work in the industry in 2024, representing a staggering nearly 1 percent of the statewide workforce.
Even more striking, Crain’s Detroit Business reported that cannabis accounted for a staggering 52 percent of Michigan’s private sector net job growth from 2018 to 2024. At a time when many of Michigan’s traditional manufacturing industries have struggled and wage growth has stalled for many workers, cannabis has been the state’s most consistent source of job growth.
Then the tax structure changed.
From January 1, 2026. Michigan enacted a new 24 percent wholesale cannabis tax. This effectively doubled the tax burden on operators at a critical point in the supply chain. The effects were immediate.
According to New Cannabis Ventures, Michigan’s legal cannabis market generated just $226 million in sales in January 2026, the lowest monthly figure since late 2022. Sales fell a sharp 16 percent from December 2025, the month before the tax took effect, and were 8 percent lower than in January 2025.
The situation may worsen in the coming months. Many Michigan dispensaries stocked inventory at the end of 2025, before the tax went into effect, and are still selling product that was not subject to the new wholesale tax.
And even that temporary solution came with compromises. Retail analytics firm Happy Cabbage noted that high-demand items were often in limited supply by the end of 2025, while low-demand items were readily available. As a result, purchasing decisions increasingly reflected what suppliers had available, rather than what customers would buy.
The full impact of the tax increase will become clearer in the coming months as more inventory from the new taxes hits store shelves and higher costs are passed on to consumers.
But already the influence of the industry has been sobering. In January alone, several large operators in Michigan announced crop closures, retail consolidation and layoffs, citing falling margins after the tax hike.
Higher Love Cannabis announced the layoffs of 61 of its 213 employees, explaining that the cuts were necessary to deal with the new tax. C3 Industries said it would close its Webberville cultivation facility and lay off 62 workers, noting that it had warned lawmakers of this outcome if the wholesale tax were enacted. PinCanna put its operations up for sale, citing the new wholesale tax as the reason. The owner of The Greenhouse announced that 30 percent of Michigan dispensaries could close in the next year due to tax increases.
This tax increase is quickly destabilizing perhaps Michigan’s most dynamic job-creating industry in recent history. An unmistakable reminder that cannabis does not operate in a closed legal market. It competes directly with a resilient illegal market with no excise taxes, no compliance costs and no regulatory burden.
This illegal market has operated for decades and can quickly absorb consumers if the price difference is too great. It is an intellectual fantasy to think that when policymakers raise taxes on cannabis, they are adjusting their revenue projections. In reality, market share and financial resources are being shifted to an unscrupulous and often violent illegal market.
Michigan’s early success showed that moderate taxation can expand the legal market and grow revenue organically. His latest shift suggests that aggressive taxation could quickly reverse that progress.
It is critical that other states take notice of what is happening in Michigan right now. In recent months, states such as Maine, Maryland and Minnesota have also increased tax rates on cannabis, hoping to cover several unrelated revenue gaps. But whether policy makers in these states appreciate it yet, these decisions will reduce legal sales and strengthen illegal operators.
In fact, California learned this lesson in the third quarter of 2025 when it raised its already high cannabis tax from 15 percent to 19 percent. Legal sales fell 5 percent from the previous quarter, falling to the lowest quarterly level in more than five years and prompting the state to quickly overturn and reset the tax rate to 15 percent. Michigan ignored this clear economic lesson.
Beyond its economic consequences, overtaxing cannabis runs counter to the spirit and logic of federal reprogramming. If cannabis is formally recognized at the federal level for medical use under Schedule III, states with a long history of medical cannabis should pause and reconsider whether their tax policies adequately reflect and respect their heritage.
Michigan and California pioneered the legalization of cannabis as medicine, creating the conditions for the dramatic shift in national attitudes reflected in the current rescheduling push. Taxing cannabis at rates that exceed those applied to alcohol and tobacco, products that kill hundreds of thousands of Americans each year, betrays this pioneering medical legacy.
If the lessons of reorganization are taken seriously, both Michigan and California should reexamine their punitive tax structures in light of their history.
And states like Pennsylvania and Virginia, which could vote to create new adult-use markets in 2026, also have a clear chance. They can achieve illusory short-term fiscal gains through higher taxes and risk repeating Michigan’s recent mistakes. Or they can design tax structures that support stable businesses, protect jobs, and align policy with the growing acceptance of cannabis.
Michigan’s tax experiment is unfolding, but early signs are troubling. The state still has time to change course, as California did, albeit modestly.
For the sake of the public, tens of thousands of cannabis workers, and the legal market it built, Michigan lawmakers should roll back this tax increase.
Other states should also learn from Michigan’s experience, rather than repeating the same economic mistake in the face of a budget deficit.
Hirsh Jain is the Director of Market Intelligence Green strategiesfinancial services and solutions company providing tax planning and accounting services to many of the nation’s leading cannabis brands and retailers. He is also the principal of Ananda Strategy, a consulting firm based in Los Angeles.
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Cannabis News
Not an average greenhouse at NC State University
Published
7 hours agoon
March 13, 2026By
admin
It takes a minute to adjust your eyes to Joe Chierak and Mike Beddoe in hats through the greenhouse doors of NC State University’s Plant Sciences Building.
It’s so bright there’s a sunglasses case in the entryway.
“When the sun shines on the white floor, it’s like being blinded by snow,” says Beddoe.
The 24-foot-tall glass and steel behemoth that sits atop the Centennial Campus building might look like an ordinary greenhouse.
© NC State UniversityThe 10,000-square-foot Plant Sciences Building controlled-environment laboratory has 11 greenhouse bays (top left) that provide fully conditioned, glass-bottom growth environments for research.
But inside computer-controlled facilities, researchers work year-round to tackle the biggest challenges farmers face from disease, pests and extreme weather.
Plants for dozens of changing research projects are grown at any given time, all with different needs, requirements, growing seasons, and Chiera and Beddoe are tasked with overseeing them.
“We serve the entire campus,” says Chiera.
Increasing innovation
Researchers in one room have rows of blue-green plants. They are mostly eucalyptus
© NC State University Widely planted hardwood trees throughout the world.
By editing specific genes in eucalyptus, NC State researchers like forestry professor Jack Wang and genome editing expert Rodolphe Barrangou are developing trees to make paper and other wood products, reducing emissions and promoting the sustainability of paper mills.
In another room, they set up chain-like runners of hanging strawberry plant racks, which can be used to root and grow more strawberries.
Associate Professor of Horticultural Sciences Mark Hoffmann is researching new ways to propagate strawberry plants to minimize the spread of pathogens before they are shipped from nurseries to growers.
Growing plants for this job requires precise control of light, humidity and other conditions.
Controlled environments for research accuracy
Shouting over the hum of fans, sprinklers and other equipment, Beddoe leads her down the hall to a back office.
© NC State UniversityEach greenhouse bay is individually monitored, helping to ensure that experiments meet the researchers’ exacting standards. Pictured: Mike Beddoe.
“This is the brains of the entire greenhouse,” Beddoe says, tapping into a control system that allows the researchers to adjust the environment in each room to their needs.
© NC State UniversityThe Plant Sciences building has 25 growing chambers of various sizes where plants are grown for food, fiber and even erosion control.
The facility includes 11 independently controlled greenhouse rooms spanning more than 10,000 square feet, as well as 25 plant growth chambers.
Sensors in each room continuously monitor temperature, soil moisture, CO2 concentration and more.
The data is then sent to a central computer, where it is analyzed and compared to optimal standards before issuing commands to the system, such as adjusting shade screens or turning on misters. Watering schedules are also programmed.
“We try to automate everything,” says Beddoe.
Safety first
Passing pots and earthenware, Chiera leads to one of the most unique rooms on the fifth floor.
The biocontainment greenhouse is one of the few facilities nationwide designed to safely screen for agricultural pests and pathogens.
Every year, farmers around the world lose up to 40% of their crops to pests and diseases.
As new threats continue to emerge that could threaten global food security, NC State is not taking any chances.
So they have converted one wing into a specialized high-capacity facility known as a biosafety level 3 laboratory.
Research here could be used to test treatments for crop diseases, for example, or to develop fruit and vegetables with greater resistance to insect pests.
The space itself is only accessible to credentialed staff, who work under the watchful eye of security cameras.
Chiera walks through the automatically closing doors and the researcher dons gowns, gloves, face shields and other protective gear before entering the lab.
What comes here, stays here
From air and water handling to waste disposal, it’s designed to ensure that what comes here stays here.
All water discharged from the BSL-3 greenhouse is run down pipes and boiled before leaving the facility.
Solid waste is treated in a special oven called an autoclave, which uses steam and pressure to ensure that any microbes are dead.
Air is also designed for safety.
A negative pressure ventilation system creates a flow of air in a direction to prevent anything in the air from escaping, and all the exhausted air is filtered out.
“So if we’re dealing with a pathogenic plant that produces spores, for example, it will trap them and not release them,” says Chiera.
Supporting diverse research in the face of tough challenges
Back in the main corridor, Chiera and Beddoe make their way through the hall to their next meeting, passing thousands of green plants along the way.
© NC State UniversityAlex Woodley (left) and Raine Lookabill study greenhouse gas emissions from greenhouse soils as part of efforts to find ways to reduce them and mitigate their effects.
Back in the main corridor, Chiera and Beddoe make their way through the hall to their next meeting, passing thousands of green plants along the way.
In one room, tests are being done on the sweet potato. Electrical and Computer Engineering Professor Wenye Wang and his team are developing ways to help farmers monitor starchy and swollen roots as they grow underground, using low-cost Wi-Fi signals (PDF) instead of expensive buried sensors.
in another room, NC State Professor Dorith Rotenberg, Department of Entomology and Plant Pathology, is growing corn. Plants will eventually become dinner for insects, such as plant eaters and aphids, to better understand how these insects spread viruses that can stunt growth and reduce yield in one of the world’s largest crops.
A fan favorite
Beddoe stops in front of a room at the end of the corridor. “This is my favorite bay,” he says.
© NC State UniversityGrayson Cothran tends plants in a popular greenhouse bay where students have the opportunity to care for various plants and learn about greenhouse operations.
Inside, there are soybeans and banana plants basking in the sun, cotton plants with their hibiscus-like blooms, as well as a genetically engineered petunia that looks like an ordinary white flower during the day but glows at night using bioluminescent mushroom genes.
“These plants are mostly for our students,” explained Beddoe. “So they can learn different ways to water and breed and things like that.”
Always called
Beddoe will return here before heading home as part of his twice-daily inspections.
Because keeping the greenhouse running requires a lot of hands-on work.
“One of us is always on call,” says Beddoe, whose phone buzzes on evenings and weekends if something needs attention.
“Plants don’t take vacations,” he added.
Source: NC State University
Cannabis News
As Massachusetts Marijuana Legalization Rollback Nears Ballot, New State Report Shows Regulated Market Reaching Most Consumers
Published
7 hours agoon
March 13, 2026By
admin
As Massachusetts voters face a November ballot initiative to roll back the state’s recreational marijuana law, a new report from officials finds legalization is achieving one of its main goals: stopping the illegal sale of cannabis as adults move into the regulated market.
A Cannabis Control Commission (CCC) report released Friday found that among adults who used marijuana in the past year, 84 percent said they got their cannabis from a licensed source.
“Adult consumers are moving away from mostly unregulated sources as the state’s adult marijuana industry enters its eighth year of operation,” says a CCC press release about the report.
with that More than $9 billion in gross sales since the launch of the adult-use market in 2018this data point indicates that illegal sales are becoming very successful; Advocates worked to drive home the impact of the policy while building support for legalization.
The analysis — which also looked at usage trends, self-reported health benefits, public opinion on legalization and more — interviewed 11,635 Massachusetts residents ages 16-65. (State law prohibits the sale of recreational cannabis to those under 21, but the CCC included younger people in the survey to understand trends in that cohort, t0o.)
“This new research shows that Massachusetts residents are moving away from the illegal market when safe and well-regulated options are available,” CCC Executive Director Travis Ahern said in a press release. “We will continue to monitor sources like the (International Cannabis Policy Study or ICPS) to guide our mission to oversee an efficient and fair cannabis market in Massachusetts.”
The Massachusetts Cannabis Control Board has released a new research report measuring recent cannabis use trends in the Commonwealth, revealing that older users are moving away from unregulated sources. Learn more: https://t.co/uue7oO2HZf pic.twitter.com/5KBIvGWjZu
— Massachusetts Cannabis Control Board (@MA_Cannabis) March 13, 2026
Here are some other findings from the report:
- Nearly half of cannabis users (43%) said they used it to “manage or improve mental health.”
- The frequency of cannabis use “generally increased year-on-year across all 16-20 age groups, where it decreased from 2019 to 2023.”
- People are more likely to report using marijuana flower products (70 percent) than other product categories.
- Overall, 81 percent said they supported legalizing adult use based on the 2023 survey data, which was “a slight decline from 83 percent support in the 2022 wave.”
“New analysis of ICPS data provides valuable insight into patterns of use and levels of education around cannabis use,” said CCC Research Lead Julie Johnson. he said.
“We are also making recommendations to help strengthen future data analysis and collection, including future research collaborations with other regulators and public health professionals and the initiation of larger studies to guide cannabis-related impairment and assess health care utilization,” he said. “We also encourage more resources to be directed to public awareness and youth education, with ample funding available through tax revenue generated from the sale of cannabis.”
The fact that 81 percent of Massachusetts residents said they supported legalization in a recent poll raises questions about the chances of anti-cannabis initiatives getting the majority needed to pass the November ballot.
A separate survey published earlier this month Residents were specifically asked about their position on the measure of withdrawal It found that 63% were against it, including 48% who said they were “strongly” against it. Only 20 percent of respondents said they supported the proposed initiative, while 11 percent “strongly” supported repeal.
The survey comes a month after cannabis activists filed a complaint with the State Voting Law Commission under the Secretary of State, alleging that petitioners with anti-cannabis campaigns used deceptive tactics to convince voters to allow them to cast their ballots.
The commission withdrew the complaint in January, however, and the ballot measure was challenged, advocates said raised “unsupported allegations” about the adequacy of the signature collection process they said he needed an official exam.
The decision marked a setback for advocates and industry players who have reported numerous accounts of alleged misconduct by applicants working on behalf of the Coalition for a Healthy Massachusetts.
He came anyway A separate survey found that nearly half of those who signed a petition to repeal marijuana sales felt cheatedaccording to many, the measure was presented to them as a proposal to deal with unrelated issues such as public education and expanded housing.
The anti-marijuana coalition has denied any wrongdoing in the signature collection process and dismissed the poll results.
The initiative would still allow adults 21 and older to possess and give away an ounce of cannabis, but it would repeal provisions of the voter-approved legalization law that allow commercial sales and home cultivation by adults. The medical cannabis program would remain intact under that measure.
A state association of marijuana companies urged voters to report them to local officials if they observe them Instances of “spoof mail” or other fraudulent solicitation tactics.
The office of Massachusetts Attorney General Andrea Campbell (D), that is He cleared the signature collection campaign in September—stressed the importance of voters reading the summary at the top of the signature form before signing any petition.
The Massachusetts legislature took up the initiative earlier this month when the 2026 session began. Since the state electoral commission has issued a resolution on the complaint, the members of parliament have until May 5 to act on the proposal. If they decide not to pass it in the legislature, the campaign would have to go through another round of petitions and get at least 12,429 certified signatures by July 1 to get on the November ballot.
Meanwhile, the head of Massachusetts’ marijuana regulatory agency recently suggested measures to effectively recriminalize the sale of recreational cannabis. dangerous tax revenues being used to support substance abuse treatment efforts and other public programs.
Massachusetts lawmakers recently joined a bicameral conference committee to hammer out a deal. double the legal limit for possession of marijuana for adults and review the regulatory framework for the state’s adult cannabis market.
In December, state regulators, too established rules for social marijuana consumption halls.
—
It’s Marijuana Time tracking hundreds of cannabis, psychedelic and drug policy bills in state legislatures and Congress this year. Patreon supporters by pledging at least $25/month, you’ll get access to our interactive maps, charts, and audio calendars so you never miss a development.
Learn more about our marijuana bill tracking and become a Patreon supporter to gain access
—
CCC has recently launched a targeted online platform helping people find work, on-the-job training and networking opportunities in the state’s legal cannabis industry.
State legislators have also been pondering imposing stricter restrictions on intoxicating hemp-derived products and a plan allowing individual entities to control a greater number of cannabis establishments.
Also in Massachusetts Legislators working on state budgets butted heads with CCC officialswho said critical technology improvements can’t be made without more money from the legislature.
Massachusetts lawmakers also passed a bill establishing a pilot program for the regulated therapeutic use of psychedelics. And they have two committees Hearings to discuss additional measures related to psilocybin were held separately.
user photo Brian Shamblen.
Cannabis News
EFI Champions Farmworker Recognition Nationwide
Published
1 day agoon
March 12, 2026By
admin

The Equitable Food Initiative, a workforce development and certification organization that partners with growers, farmers, marketers and consumer groups, is encouraging the agricultural community to recognize and celebrate National Farmer Awareness Week with free and impactful tools offered in its communications tools.
Observed annually during the last week of March culminating in Cesar Chavez’s birthday, Farmers’ Awareness Week honors the essential contributions of the men and women who move our food supply chain. From planting and harvesting to packing and shipping, farm workers bring deep knowledge, technical skills and pride to their work every day.
“Farmworker Awareness Week is an important reminder to pause and recognize the highly skilled and physically demanding work that farmworkers do every day to bring healthy, nutritious food to our tables,” said LeAnne Ruzzamenti, EFI’s director of marketing and communications. “Our toolbox is designed to help businesses and communities celebrate their employees and community members and share employee stories that educate consumers about the experience and dedication behind the food.”
EFI’s toolset makes it easy for businesses, retailers, industry organizations, educators and community leaders to show appreciation and raise awareness. The toolkit, available at equitablefood.org/toolkit, includes:
· Social media graphics, sample posts and videos to share
· Posters, technical sheets and printable infographics for offices, shops and workplaces
· A model proclamation to share with local and state officials
· Color a page for children
· Ideas for organizing weekly events or internal celebrations
· And more…
All materials are customizable and free to download, making participation easy and accessible for organizations of all sizes.
Farm workers are not only essential for production, but also essential for farm innovation and continuous improvement. Many bring years, even decades, of experience providing insights that improve quality, efficiency and food safety. Their pride in their craft and their commitment to doing the job well are the foundations for a strong and resilient farming system.
Alexandra Martinez, head of digital marketing and sales at the Equitable Food Initiative, emphasized the importance of industry-wide participation. “We hope that this special week is just the beginning for our industry to shine a light on the experience, resilience and professionalism that our employees provide throughout the year,” said Martinez. “To encourage this, EFI provides resources and reminders to highlight our essential workers with ongoing initiatives like #FarmworkerFriday and other digital tools.”
EFI encourages manufacturers, retailers, brands, allied organizations and consumers to download the toolkit and incorporate its resources into newsletters, in-store promotions, team meetings, classroom activities and community events. By raising awareness and appreciation during Farmworker Awareness Week, the industry can collectively highlight the hard work that sustains our food system year-round.
A free Farmworker Awareness Week Communication Toolkit is available here www.equitablefood.org/toolkit
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