Bipartisan Michigan Bill Would Repeal 24% Wholesale Marijuana Tax
- Michigan Senate introduced bipartisan Senate Bill 810 to repeal the newly enacted 24% wholesale marijuana tax aimed at funding road repairs.
- The 24% wholesale tax was established earlier in 2025 as part of the Comprehensive Road Funding Tax Act but has faced criticism for increasing costs in the marijuana market.
- If passed, SB 810 would eliminate the wholesale tax, reverting Michigan to its previous tax structure of a 10% excise tax plus a 6% sales tax on adult-use marijuana sales.
- The bill fully repeals the current law without proposing a replacement funding method, prompting further debate on funding for infrastructure and marijuana taxation.
Bipartisan legislation introduced today in the Michigan Senate would repeal the state’s newly enacted 24% wholesale marijuana tax that was created to help fund road repairs. Senate Bill 810, filed by State Senator Jonathan Lindsey (R) along with seven cosponsors (three Democrat and four Republican), would repeal 2025 Public Act 23, known as the Comprehensive Road Funding Tax Act. The measure was referred to the Senate Government Operations Committee.
The law, approved earlier this year as part of budget negotiations, established a 24% wholesale tax on marijuana. The revenue was earmarked for road funding, but the policy has drawn criticism from industry stakeholders and some lawmakers who argue it significantly increases costs within the state’s marijuana market.
If SB 810 is approved and signed into law, the 24% wholesale tax would be eliminated. In effect, Michigan would revert to its previous marijuana tax structure, which includes a 10% excise tax on adult-use marijuana sales at the retail level, in addition to the state’s 6% sales tax. Those taxes were in place prior to the adoption of the new wholesale levy.
As introduced, the bill consists of a full repeal of Public Act 23, with no replacement funding mechanism outlined in the current version. Lawmakers will now debate whether to maintain the new wholesale tax for infrastructure funding or return to the prior tax framework.
Michigan voters approved the legalization of recreational marijuana in November 2018. The first adult-use retail stores opened in December 2019, marking the start of the state’s regulated recreational marijuana market.