Michigan’s Marijuana Tax Under Legal Scrutiny
In a bid to halt the implementation of a newly proposed excise tax on marijuana, Michigan’s cannabis industry has turned to the courts. A recent motion filed with the Michigan Court of Claims seeks an injunction against the tax, which is set to fund road repairs starting in January. The legal process surrounding this tax could extend for months.
The Michigan Cannabis Industry Association has expressed concern over the additional 24% wholesale tax, stating it is excessive when combined with existing taxes. The association warns that this tax could be detrimental to current legal businesses, potentially driving them out of operation.
One of the core arguments from the association is that Governor Gretchen Whitmer and lawmakers allegedly circumvented proper legislative procedures. They claim that the amendment to Michigan’s voter-approved recreational marijuana law was presented under the guise of a tax bill aimed at funding road infrastructure.
According to state law, any changes to voter-approved initiatives require a three-fourths supermajority vote in the Legislature. The filing argues, “Therefore, while the State may claim an interest in raising revenue to rebuild roads, it cannot use the enforcement of an unconstitutional tax that will destroy businesses and livelihoods to achieve that goal.” The filing also highlights that the tax could cause “immediate and irreparable” harm to its members.
This latest legal filing follows the industry’s initial notice to challenge the tax earlier this month. While the Michigan Treasury, responsible for implementing the tax, has declined to comment due to the ongoing litigation, the state has yet to respond formally to the lawsuit.
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