Michigan Judge Denies Bid to Halt New Cannabis Tax

OG article by Beard Bros Media

December 12, 2025

Michigan's cannabis industry faces a major setback as a judge denied a request to block a new 24% wholesale tax effective January 1. Court of Claims Judge Sima G. Patel rejected preliminary injunctions from cannabis businesses and the Michigan Cannabis Industry Association (MCIA), allowing the tax under the Comprehensive Road Funding Tax Act (CRFTA) to proceed. Plaintiffs argued it unconstitutionally amends the 2018 voter-approved Michigan Regulation and Taxation of Marihuana Act (MRTMA), which requires a three-fourths legislative supermajority for changes. The judge noted CRFTA doesn't alter MRTMA's text and aims primarily at road funding, raising $421 million annually. However, she acknowledged potential conflicts with MRTMA's goals, leaving room for trial arguments. Michigan's market, successful with 75% legal sales due to the original 10% tax, now faces rates nearing 40% total, risking price hikes and a 14.4% sales drop per state forecasts. Industry leaders like MCIA's Robin Schneider warn of pushing consumers to illicit markets, undermining legalization. Businesses with slim margins may close, as prices for flower dropped to under $62 per ounce. The case heads to trial January 13, 2026, with appeals possible, threatening Michigan's regulated cannabis progress and national implications.