Michigan Marijuana Tax Lawsuit Moves Forward

LANSING, Mich. -- Michigan Court of Claims Judge Sima Patel has allowed a lawsuit challenging the state's 24-percent wholesale tax on marijuana sales to proceed. The Michigan Cannabis Industry Association (MCIA) filed the lawsuit, arguing that the tax, which took effect on January 1, violates the intent of the 2018 voter-approved cannabis legalization law.

Judge Patel denied the state's request to dismiss the lawsuit, stating that there are significant questions about whether the tax aligns with the original purpose of the law. The MCIA claims the tax could harm the marijuana industry by driving consumers to the black market and potentially putting small retailers out of business.

In a statement, Rose Tantraphol, spokesperson for the MCIA, expressed satisfaction with the court's decision, emphasizing that it recognizes the serious concerns about the tax's legality. The association has also sought to have the Michigan Court of Appeals hear the case to fully explore their arguments.

The tax was implemented as part of the Fiscal Year 2026 state budget, and its legality will be scrutinized in the upcoming trial. The outcome of this case could have significant implications for Michigan's cannabis industry and its regulatory framework.