Michigan Pot Industry Loses First Round Over 24 Percent Tax

I’m all for finding unique ways to fix Michigan’s awful roads, but not if it means crushing an entire industry just to pay for it.

Earlier this year, Michigan approved a new 24 percent tax on wholesale cannabis sales, and the state plans to use that money to fund road construction. If the tax survives, it could bring in around 420 million dollars (of course, it’s 420) for paving projects. However, the marijuana industry says it will cripple their business.

See Also: Is It Legal to Smoke Weed at Outdoor Concert Venues in Michigan?

They argued in court that lawmakers didn’t have enough support to pass the tax in the first place. Since Michigan legalized recreational cannabis through a ballot proposal, they claim any big change, especially a tax this size, should require a supermajority vote in Lansing, not a standard one.

According to Fox 2 Detroit, a judge didn’t agree. Judge Sima Patel ruled that the industry failed to prove the tax violates Michigan’s constitution, so there’s no reason to block it. For now, the state can keep collecting the money, and weed cash is still being lined up to fix our roads.

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But it’s not over. The judge didn’t toss the lawsuit, she just refused to pause the tax while everything plays out. Another hearing is set for January 13, 2026, to decide whether this turns into a full trial.

So the tax stands for now.