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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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1 month 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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Hemp sector at risk as last minute shutdown bill adds language targeting intoxicating products

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12 hours ago

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November 12, 2025

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The bill passed by the United States Senate to reopen the federal government includes language that could effectively shut down the country’s current hemp sector. Buried in the 141-page funding package is a provision that would ban the sale of unregulated intoxicating hemp-derived products, including delta-8 THC, and would change the definition of hemp in a way that would make most existing products illegal.

The word came a day before the vote, after pressure from states and parts of the marijuana industry. Hemp operators have long argued that resistance to hemp has a lot to do with safety and market protection, noting that calls for restrictions are most organized where marijuana is legal.

According to the US Hemp Bureau, “If passed, this legislation would wipe out 95% of the industry, shut down small businesses, and shut down America’s farms at a cost of $1.5 billion in lost tax revenue to states.”

Under language now attached to the funding bill, any hemp-derived product would have to meet strict limits for human or animal consumption. It could not contain more than 0.3 percent total THC and no more than 0.4 milligrams total THC in the entire package. Cannabinoids should be naturally occurring in the plant. Compounds produced by chemical conversion or other manufacturing methods would be prohibited. In practice, this would remove most intoxicating hemp products from gas stations, online stores, and corner stores across the country.

Supporters say the measure would close a loophole that has allowed intoxicating hemp products to spread without oversight. Opponents say it would stifle the hemp economy by leaving CBD and industrial hemp uses alone.

The conflict came to a head in Kentucky, where the two state senators found themselves on opposite sides. Senator Rand Paul warned that the language would kill an entire industry and hurt farmers and small businesses. He summarized the bill, Sharing in X that the provision has nothing to do with reopening the government and would hurt Kentucky agriculture.

The voices of the industry line up behind this vision. Tilray Brands stated: “As a leader in the hemp industry, Tilray Brands strongly supports forward-thinking smart regulation, not bans that stifle innovation, threaten small businesses and reduce consumer choices. The hemp language buried in the government’s funding bill is misguided, misguided in consumer interests, and misplaced in law.

The company added that responsible operators already comply with state regulations and called on Congress to work with the industry instead of passing restrictions that would eliminate an entire product category.

© Tilray Marks

Others are putting data on the table. “The data shows that adults are using hemp beverages responsibly to relax, reduce alcohol consumption and feel better without high levels of intoxication,” said Kevin Provost, CEO of MoreBetter. Chief Operating Officer Tyler Dautrich added, “This is not a legalization debate, this is a data-driven public health issue.

“Our industry is being used as a pawn by leaders as they work to reopen the government. Recriminalizing hemp will force American farms and businesses to close and disrupt the well-being of countless Americans who depend on hemp,” said Jonathan Miller, General Counsel of the U.S. Hemp Roundtable.

The hemp-derived beverage segment alone represents $1 billion in annual sales, largely driven by small businesses and supporting farmers, processors and retailers. A recent national poll shows that more than 70 percent of Americans want hemp products to be legal and available.

The Senate passed the bill 60 to 40. The House has yet to vote. The stakes are clear. If the language doesn’t change, the government could reopen the market for hemp-cannabinoids while they disappear.

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Minnesota Hemp Businesses And Senators Say Federal THC Ban Will Hurt The State’s Economy

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12 hours ago

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November 12, 2025

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“Senator Klobuchar voted against the hemp provision because he believed it would hurt the state’s small businesses.”

By Ana Radelat, MinnPost

Minnesota has a growing industry of intoxicating hemp products, including soft drinks and gummies. A product ban making its way through Congress in a bill that would reopen the federal government.

The bill gives the industry 365 days before all products containing more than 0.4 milligrams of THC (a trace) are outlawed. Christopher Lackner, president of the Hemp Beverages Alliance, hopes to give the industry time to push back against the provision, which he called “arbitrary” and “punitive.”

He said he’s betting on “the pushback from consumers, suppliers and distributors and everyone else in the supply chain” that a ban on THC-infused products made from hemp will cause.

“Our hope as an industry is that Congress will come back and meet with all the stakeholders and build a federal hemp beverage framework that worksLackner said.

The 2018 Farm Bill legalized hemp, removing it from the federal definition of marijuana under the Controlled Substances Act and treating it as an agricultural commodity. It also opened the doors to the production of “modifying” products derived from hemp.

Minnesota led the nation in harnessing the redefinition of hemp. Whitney Economics’ Latest report on THC beverages It estimated total US THC beverage sales to exceed $1.1 billion in 2024, and Minnesota was a key state in that growth.

Success has come at a price, however. Competing industries, mostly the nation’s nascent legal marijuana industry and, more recently, the beer and spirits industries, furiously lobbied to shut down what they saw as “the loophole”. in the 2018 Farm Bill that has led to an explosion of hemp-infused products.

The marijuana and alcohol industries say hemp products are largely unregulated and some contain dangerous amounts of THC. They also say there are no labeling and marketing restrictions or efforts to keep THC-infused drinks and edibles away from children.

On Monday, the Beer Institute, the Distilled Spirits Council of the United States and other alcohol trade groups He sent a lobbying letter to members of CongressSen. Rand Paul, R-Ky., urging the rejection of an amendment that would have removed the bill’s blackout language.

“Producers of alcoholic beverages, one of the top consumer products, are asking the Senate to reject Paul’s attempts to allow hemp-derived THC products to be sold across the country without federal regulation and oversight,” the letter said.

Their argument won the day.

The legislation that would have ended the shutdown includes three appropriations bills in fiscal year 2026 to fund various government agencies, including the U.S. Department of Agriculture, where the hemp provision was inserted. All other federal agencies would receive short-term funding — through the end of January — under a continuing resolution, or CR.

While the hemp industry lost the lobbying battle, it gained supporters in the US Capitol. Paul, for example, blocked Senate GOP leaders from getting unanimous approval to fast-track the shutdown bill, which overcame a six-week Democratic gridlock on a 60-40 vote Sunday afternoon.

The US Senate voted to table—or reject—the Paul amendment, 76-24. Senators Amy Klobuchar (D) and Tina Smith (D) of Minnesota were in the minority in support of the effort to remove the hemp language.

“Senator Klobuchar voted against the hemp provision because he believed it would harm the state’s small businesses and because Congress’ efforts to regulate hemp products should take into account states like Minnesota that already have strong regulations,” a Klobuchar spokesperson said.

Lackner also said lawmakers in Congress were trampling on states’ rights to regulate intoxicating hemp products.

“This is a slap in the face to states like Minnesota that have developed regulatory frameworks based on stakeholder input,” he said.

The hemp switch is wrong from every angle‘

Steve Brown, CEO of Nothing but Hemp, a Northeast Minneapolis-based company that makes THC-infused gummies and drinks, brewery emulsions and a variety of other hemp-based products, said the shutdown bill could spur a move into the marijuana industry.

That said, if President Donald Trump signs the legislation, as expected, the manufacture and sale of its products will be illegal under federal law, and it will have a major impact on its market.

Brown said liquor stores could not offer any of his drinks on the shelves. Microbreweries, which have tried to combat declining beer sales by offering THC drinks that are more popular than alcohol among young people, would be breaking federal law if they continued to offer such libations.

And retail stores, including Target, would likely stop selling THC-infused drinks and other products because customers wouldn’t be able to pay for them with credit cards due to federal banking rules.

Shipping THC-infused products across state lines would also be against federal law.

“I think it’s wrong from every angle,” Brown said of the hemp provision in the shutdown legislation.

Brown said he manufactures about 2 million cans a year and that his THC-infused beverage operation is small compared to other Minnesota companies.

He said he started his business in a kiosk with a sign that read “Try CBD,” a non-intoxicating hemp ingredient that is praised for its medicinal value. If hemp-infused drinks and edibles are outlawed, Brown says he’s preparing to turn Nothing but Hemp, which has 60 employees, into a marijuana business.

Jim Taylor, a spokesman for the Minnesota Office of Cannabis Management, said “any draft or proposed (hemp) language is being reviewed to see its impact on Minnesota.”

“This is a complex policy issue, and we are reviewing it with the Attorney General,” Taylor said.

Just signed by Minnesota Attorney General Keith Ellison a letter They said unregulated THC products pose a threat to the general public along with 38 other attorneys general.

David Ladd, president of the Minnesota Industrial Hemp Association, said his group has tried to be as neutral as possible on the issue. But he said the state’s hemp growers also don’t want to “stifle innovation and investment” in hemp, which can be used to produce a variety of products, including biofuels, paper and textiles.

“I get regulations and sponsors for hemp products,” Ladd said. “But an arbitrary change in the definition of hemp is no substitute for measured regulation.”

The US Senate gave final approval to the shutdown bill late Monday. The legislation now heads to the US House, where Minnesota’s Democratic House members are expected to join the state’s two Democratic senators — Klobuchar and Smith — to reject the legislation.

So the longest government shutdown is on its way to an end after eight moderate Democrats in the US Senate dropped their opposition to the bill. GOP leaders said they offered a fair deal because the legislation would protect programs from Trump’s budget cuts and the Affordable Care Act subsidy extension promised by Senate Leader John Thune (R-SD) in exchange for Democrats’ votes to reopen the government.

This led to an onslaught of criticism from Democratic colleagues and Democratic voters.

Rep. Angie Craig, D-2. Barrutiko, for example, posted on social media “If people think this is a ‘deal’, I have a bridge to sell you.”

This the article appeared for the first time MinnPost and is republished here under a Creative Commons Attribution-NoDerivs 4.0 International License.

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The fight to stay afloat in a competitive market

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1 day ago

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November 11, 2025

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Cannabis became legal for adult use in California in 2016, and adult-use licensing began in January 2018. Nearly a decade after adult-use marijuana became legal in California, two cannabis owners point out that, between taxes and competition, the cannabis business is not equal. Last month, the Humboldt County Board of Supervisors reduced the cannabis tax rate to zero on Oct. 28, ending a long debate about the law’s impact on struggling growers.

Julius Adams, co-founder of Cannabis shop Proper Wellness Center, says business has been good, but with the constant competition from new cannabis shops, various taxes and regulations, it can be frustrating for new business owners.

“Every penny is regulated and so every penny is taxed, so it scares a lot of people away that they don’t want to be a part of it, you know, especially when the taxes are as high as they are,” Adams said.

One of the Proper Wellness distributors is the Sol Spirit cannabis farm, which operates as a small agribusiness. Owner Judi Nelson says she is mired in competition with big distributors, and has to work two jobs to stay afloat.

Read more at ABC 7










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