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Michigan Gov. Gretchen Whitmer signed an $81 billion budget on Oct. 7 that puts her road improvement funding plan on the backs of cannabis businesses and consumers via a new 24% wholesale tax.
 
The wholesale tax, which will be levied on cannabis transferred from cultivators and manufacturers to retailers, will start on Jan. 1, 2026, barring any court injunctions. This is in addition to the state’s 10% cannabis excise tax at retail and 6% sales tax.
 
In any state, higher cannabis taxes inevitably increase dispensary prices, which often drives consumers to unregulated sources.
 


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