12/09/2025
Michigan’s legal w**d industry suffered a major blow Monday in its legal battle against a new 24% wholesale tax on cannabis.
Michigan Court of Claims Judge Sima Patel ruled against the Michigan Cannabis Industry Association in denying its request for an injunction and effectively cleared the way for the tax to take effect on Jan. 1.
In her ruling, Patel agreed with the state's argument that adding a tax does not change ma*****na laws.
“The court finds insupportable plaintiffs’ argument … that the Michigan Regulation and Taxation of Ma*****na Act (MRTMA) is the sole method by which to tax regulated ma*****na in Michigan and that the 24% wholesale excise tax could only be enacted through an amendment to the MRTMA passed by a supermajority,” Patel wrote in her ruling.
Nothing in the voter-passed law, she said, requires that “all other taxes” imposed on ma*****na be effectuated by an amendment to that law. Rather, the Legislature imposed another tax through the road-funding law.
The new wholesale tax was written into House Bill 4951, which was passed 78-21 in the Republican-led House and 19-17 in the Democratic-controlled Senate — short of the supermajority threshold in both chambers.
But Patel did leave a window for the industry.
Read more here: https://www.crainsdetroit.com/cannabis/new-michigan-w**d-tax-will-go-effect-jan-1-after-judges-ruling?utm_source=facebook&utm_medium=soc-own