Michigan lawmaker moves to repeal 24% cannabis wholesale tax

Repeal effort follows tax implementation as Michigan market faces pricing pressure and operator profitability challenges.

FILE — statehouse · B.D. Gilfry / CC BY-SA 2.0

A Michigan lawmaker is seeking to repeal the state's 24% cannabis wholesale tax, according to WLNS. The tax was imposed in early August, days before this repeal effort emerged. The move comes as Michigan's cannabis market operates with 923 retail locations, 2,587 cultivators, and 344 manufacturers across the state.

The repeal push appears timed to existing market stress: Michigan cannabis prices hit record lows in late July amid competition, while operators face profitability challenges despite overall market growth. Recent enforcement actions—including dispensary closures for violations and security gaps—add pressure to an already-squeezed sector.

Watch whether the repeal gains legislative traction and what threshold of operator complaints or sales data the state cites to justify or defend the tax.