(LANSING) — A cannabis industry group is suing Michigan over a new 24% wholesale tax signed into law by Gov. Gretchen Whitmer.
The Michigan Cannabis Industry Association filed a lawsuit with the state Court of Claims, asking a judge to block the tax and declare it illegal. The new tax, which goes into effect on Jan. 1, 2026, is part of the state's budget and is intended to generate revenue for road improvements. The tax is estimated to generate about $420 million.
The lawsuit argues that the new law is unconstitutional because it alters a voter-approved initiative without the required three-fourths supermajority vote from the Legislature. The cannabis industry group also alleges the tax violates the state constitution's "change of purpose" clause, which states a bill's final purpose must be related to its original purpose.
Whitmer expressed confidence in the tax's legality, stating she would not have signed the bill if she were not confident it would be upheld. The new tax is an additional levy to the state's existing 10% excise tax and 6% sales tax on cannabis.