Michigan lawmakers propose one-year freeze on wholesale cannabis tax

State lawmakers are considering legislation to freeze Michigan’s 24 percent wholesale cannabis tax for one year, a move that has sparked debate over local business survival and road funding. The tax, which took effect in January, was designed to help fund road repairs across the state.

State Treasury data shows collections totaled $34 million during the first four months, approximately $70 million short of the roughly $104 million originally projected by state analysts. The wholesale tax applies in addition to Michigan’s existing 10 percent retail excise tax and 6 percent sales tax on recreational marijuana.

Henry Meyer, owner of Fortuo Premium Cannabis in Lansing, said the tax is squeezing his business operations and has forced operational cutbacks, including reducing staff hours. Transportation officials caution against halting the tax revenue, warning that the state cannot afford to lose dedicated transportation funding for road repairs.

Read the full story at wilx.com.