The Michigan Cannabis Industry Association filed a lawsuit Tuesday challenging a new 24% wholesale tax on marijuana.
The tax is set to begin January 1, 2026, and it's estimated it will generate $420 million annually. The revenue will help fund road improvements as part of the state budget.
The lawsuit, filed in the Michigan Court of Claims, argues that the tax violates constitutional requirements for changing voter-initiated laws. Recreational marijuana was legalized by Michigan voters in 2018, and the suit contends that any changes to voter-approved laws require either a three-fourths legislative vote or voter approval.
The Michigan Cannabis Industry Association released a statement:
"The lawsuit details multiple ways in which the legislators acted unconstitutionally in the passage of this tax. Notably, Article 2 Section 9 of the Michigan Constitution requires a three-quarters vote, rather than a simple majority vote, to amend any law enacted by citizen initiative, as was the Michigan Regulation and Taxation of Marihuana Act, which passed on the 2018 election ballot. The lawsuit details how the last-minute, late-night process occurred in violation of a range of other constitutional provisions. The Association is asking the Court to strike the tax in its entirety."
The association shared a copy of the lawsuit with FOX 17:
Michigan Cannabis Industry Association Lawsuit by news
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