"...The Michigan Court of Claims won’t block a 24% wholesale marijuana tax before it takes effect on Jan. 1, 2026.
“At this time, the court finds that plaintiffs have not demonstrated they are likely to succeed on the merits,” Court of Claims Judge Sima G. Patel wrote in her opinion. “Accordingly, the court denies plaintiffs’ motions for preliminary injunction…”
The opinion rejects arguments made by suing marijuana companies and the state’s largest cannabis lobbying group, the Michigan Cannabis Industry Association, that claim the new tax amends the 2018, voter-passed Michigan Regulation of Marijuana Act (MRTMA) and therefore required three-fourths support of the Legislature to be passed.
The judge noted that the voter initiative “plainly stated” the 10% retail excise tax was “in addition to all other taxes.” Because of that language, the court concluded that nothing in the measure prohibits imposing additional, separate taxes on marijuana.
The new legislation, referred to as the Comprehensive Road Funding Tax Act, “did not amend” the Michigan Regulation of Marijuana Act, the court said.
Jamie Lowell, director of Michigan’s National Organization for the Reform of Marijuana Laws chapter and one of the 2018 law’s drafters, called the ruling a “misfire.”
The language “was meant to cover existing general taxes, not to open the door for new marijuana-only taxes,” Lowell said.
Michigan Cannabis Industry Association spokesperson Rose Tantraphol said her organization doesn’t believe the judge “made the right call.”
“While we are deeply frustrated by this ruling, I can tell you this: The fight is far from over,” Tantraphol said. “We remain confident in the strength of our case that this move by the Legislature violated the will of the voters who approved the 2018 citizen ballot initiative. We plan a swift appeal.”..."