Michigan Cannabis Industry Fights Back Against New Wholesale Tax

Honigman LLP filed a lawsuit on October 7^th challenging a new state law that was signed hours earlier imposing a 24% wholesale tax on the marijuana industry on behalf of the Michigan Cannabis Industry Association and PG Manufacturing, LLC. The tax is scheduled to take effect on January 1^st and was at the center of a compromise between Democrats and Republicans ending a months-long budget standoff. The suit, filed with the Michigan Court of Claims, asks the Court to strike the tax in its entirety and details how the last-minute, late-night process occurred in violation of several constitutional provisions. A request for preliminary injunction was subsequently filed requesting the Court to issue a temporary order preventing the State from imposing the tax pending the outcome of the case. A hearing on the request for preliminary injunction is scheduled for November 25^th. More details on the status of the case can be found here.

Honigman’s Cannabis Industry Group is available to answer any questions or concerns. Several of our attorneys and lobbyists continue to be actively involved and communicate regularly with the Cannabis Regulatory Agency (CRA) about our clients’ priorities.  We will continue to closely monitor updates related to the cannabis industry. If you have any questions related to the CRA, please reach out to us for assistance.