Michigan's cannabis industry group urges appeals court to intervene before wholesale tax takes effect, citing it as unconstitutional.
A leading trade association in Michigan has asked the state's Court of Appeals to step in and block a new 24% wholesale tax on marijuana before it goes into effect on January 1st. The Michigan Cannabis Industry Association (MiCIA) argues that the tax is unconstitutional and claims lawmakers passed it through a "shell bill" in the final stages of the legislative process, violating state law.
Industry leaders warn that adding this new tax will push prices close to those in California, where high taxes have led to erosion of parts of the market. In November, recreational flower sales dropped to a record low, and total sales fell for the first time. MiCIA says if the tax goes into effect, Michigan's cannabis industry could suffer greatly.
The state's own Senate Fiscal Agency has predicted that due to market elasticity, total sales will decrease by 14% if the new wholesale tax takes effect. Industry leaders claim that consumers may be pushed back into the illicit market, causing significant economic and social harm.
MiCIA is represented by attorneys from Honigman LLP and Dykema. The organization's spokesperson, Rose Tantraphol, believes that an appellate review is necessary to prevent unnecessary harm to the industry already struggling under financial strain.
A leading trade association in Michigan has asked the state's Court of Appeals to step in and block a new 24% wholesale tax on marijuana before it goes into effect on January 1st. The Michigan Cannabis Industry Association (MiCIA) argues that the tax is unconstitutional and claims lawmakers passed it through a "shell bill" in the final stages of the legislative process, violating state law.
Industry leaders warn that adding this new tax will push prices close to those in California, where high taxes have led to erosion of parts of the market. In November, recreational flower sales dropped to a record low, and total sales fell for the first time. MiCIA says if the tax goes into effect, Michigan's cannabis industry could suffer greatly.
The state's own Senate Fiscal Agency has predicted that due to market elasticity, total sales will decrease by 14% if the new wholesale tax takes effect. Industry leaders claim that consumers may be pushed back into the illicit market, causing significant economic and social harm.
MiCIA is represented by attorneys from Honigman LLP and Dykema. The organization's spokesperson, Rose Tantraphol, believes that an appellate review is necessary to prevent unnecessary harm to the industry already struggling under financial strain.
I'm a bit worried about this new tax, but at the same time, it makes me think about how Michigan can work together with its cannabis industry to find solutions 
. I mean, we've seen what happens in California - if prices get too high, people might go back to buying from the black market 
. But MiCIA is already on top of this and trying to block the tax before it's too late 
. Maybe this whole thing can lead to some major changes that benefit both the industry and the state 
. And who knows, maybe this is an opportunity for Michigan to create a more sustainable cannabis market? 
. I mean, Michigan's got its own struggles, but pushing prices like crazy just ain't gonna help. The whole state's cannabis industry is still kinda new, so how are they supposed to absorb another huge hit? 
It's not like the law makers even bothered to explain it properly... a "shell bill"? Sounds sketchy to me. Anyway, I hope that Court of Appeals does intervene and blocks this tax. We need our cannabis industry to stay afloat, you know? The state already gets enough from taxes and licensing fees. Adding another 24% just seems like too much 
.
I mean, my friend's cousin lives in Michigan and he said it's like California all over again with all the taxes... but isn't that bad for the people who sell weed? 
The industry's already struggling, and this tax is just gonna make things worse. I feel bad for the dispensaries and growers who are just trying to make a living 
We need to make sure we're not gonna see some major economic downturn because of this tax. Fingers crossed that the Court of Appeals will listen and step in before January 1st 
. I can totally see how that would push people back into the illicit market, causing more problems than it solves 
. It's all about finding a balance, you know?
. And 14% decrease in sales? That’s a pretty big drop, and I don’t think the state wants all that extra cash just yet 
prices are already high enough as it is and now they wanna slap even more on top of it? what's next? a 50% tax 
and then they'll just be crying about how its hurting sales... like who doesn't know that already happens when taxes go up 
, michigan's cannabis industry needs some serious support right now and throwing on top of it a 24% wholesale tax is just gonna push them over the edge 
, and don't even get me started on the whole shell bill thing, if lawmakers can sneak this one past us, what's next? 
, miCIA is right to fight for their rights and prevent this economic mess from unfolding, we need to support our local businesses and industries before it's too late 
, and 14% decrease in sales? that's just devastating news 
. And if people are forced back into the illicit market... well, that's just a whole mess of problems 
.
First of all, a shell bill? That sounds like some shady stuff to me. What's really going on behind the scenes? Are lawmakers just trying to line their pockets with taxpayer money? 
The state should rethink this whole thing before it's too late. We need to protect our local businesses and the people who rely on them. 
It's like, lawmakers really didn't think this one through 
14% decrease in sales? That's a pretty big chunk of change 
. And what really gets me is that lawmakers basically slipped this tax in as a last-minute addition to the law... sounds like some shady business