{"id":86616,"date":"2026-08-11T10:10:32","date_gmt":"2026-08-11T18:10:32","guid":{"rendered":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2026\/08\/11\/michigan-gop-lawmaker-seeks-to-repeal-marijuana-tax-increase-as-rising-costs-cause-businesses-to-close\/"},"modified":"2026-08-12T19:46:59","modified_gmt":"2026-08-13T03:46:59","slug":"michigan-gop-lawmaker-seeks-to-repeal-marijuana-tax-increase-as-rising-costs-cause-businesses-to-close","status":"publish","type":"post","link":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2026\/08\/11\/michigan-gop-lawmaker-seeks-to-repeal-marijuana-tax-increase-as-rising-costs-cause-businesses-to-close\/","title":{"rendered":"Michigan GOP Lawmaker Seeks To Repeal Marijuana Tax Increase As Rising Costs Cause Businesses To Close"},"content":{"rendered":"<p><img loading=\"lazy\" src=\"https:\/\/cannabiscultivatornews.com\/home\/wp-content\/uploads\/2026\/08\/MM_Bill_Tracker_V5_blank-11.jpg\" width=\"1500\" height=\"1500\"> <\/p>\n<p>A Michigan Republican representative has filed legislation that would reverse a <a href=\"https:\/\/www.marijuanamoment.net\/michigan-lawmakers-approve-marijuana-tax-increase-projected-to-raise-420-million-in-annual-revenue\/\" target=\"_blank\" rel=\"nofollow noopener\">recently enacted tax increase on marijuana businesses<\/a>.<\/p>\n<p>The new bill, from Rep. James DeSana (R) would repeal the 24 percent wholesale cannabis tax that was enacted as part of legislation negotiated by Gov. Gretchen Whitmer (D) and House and Senate leaders last year.<\/p>\n<p>The tax was projected by state officials to\u00a0raise $420 million, with the revenue aimed at funding road repairs and construction.<\/p>\n<p>The levy has been <a href=\"https:\/\/www.marijuanamoment.net\/michigan-judge-allows-lawsuit-challenging-new-marijuana-tax-to-proceed\/\" target=\"_blank\" rel=\"nofollow noopener\">challenged in court through lawsuits filed by the cannabis industry<\/a>.<\/p>\n<p>\u201cIt\u2019s time to repeal this failed tax and stop forcing taxpayers and businesses to pay for a policy that simply isn\u2019t working,\u201d DeSana told WNEM-TV<\/p>\n<p>The GOP lawmaker <a href=\"https:\/\/www.wnem.com\/2026\/08\/11\/bill-seeks-scrap-michigans-wholesale-cannabis-tax\/\" target=\"_blank\" rel=\"noopener\">said<\/a> the tax is generating in less than half of what its supporters anticipated\u2014falling roughly $70 million less in the first four months of the fiscal year, which could rise to a $210 million shortfall from projections, he told the local news outlet.<\/p>\n<p>Removing the new wholesale tax would ease the fiscal burden on legal cannabis businesses and help them compete with the unregulated market, he argues.<\/p>\n<p><strong>\u2014<br \/>\nMarijuana Moment is <a href=\"https:\/\/www.marijuanamoment.net\/bills\/\" target=\"_blank\" rel=\"noopener\">tracking hundreds of cannabis, psychedelics and drug policy bills<\/a> in state legislatures and Congress this year. <a href=\"https:\/\/www.patreon.com\/marijuanamoment\" target=\"_blank\" rel=\"noopener\">Patreon supporters<\/a> pledging at least $25\/month get access to our interactive maps, charts and hearing calendar so they don\u2019t miss any developments.<\/strong><br \/>\n<a href=\"https:\/\/www.marijuanamoment.net\/bills\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" class=\"alignnone wp-image-9128 size-medium\" src=\"https:\/\/cannabiscultivatornews.com\/home\/wp-content\/uploads\/2026\/08\/MM_Bill_Tracker_V5_blank-10.jpg\" alt=\"\" width=\"300\" height=\"300\" \/><\/a><br \/>\n<strong>Learn more about our <a href=\"https:\/\/www.marijuanamoment.net\/bills\/\" target=\"_blank\" rel=\"noopener\">marijuana bill tracker<\/a> and become a <a href=\"https:\/\/www.patreon.com\/marijuanamoment\/\" target=\"_blank\" rel=\"noopener\">supporter on Patreon<\/a> to get access.<br \/>\n\u2014<\/strong><\/p>\n<p>To that point, the company Higher Love Cannabis Co. on Monday announced it will be suspending operations at five of its nine dispensaries, citing the \u201cmounting tax burden\u201d on marijuana businesses in the state and specifically calling out the new wholesale tax, which it said \u201cintroduced another substantial cost in a market already subject to a 10% retail excise tax and 6% sales tax.\u201d<\/p>\n<p>\u201cThis decision comes amid broader pressure across Michigan\u2019s cannabis industry, where oversupply, price compression and declining revenue have already forced numerous businesses to consolidate, suspend operations facilities and eliminate jobs,\u201d Higher Love <a href=\"https:\/\/findhigherlove.com\/higher-love-retail-update-august-2026\/\" target=\"_blank\" rel=\"noopener\">said<\/a> in a press release. \u201cThe added tax burden has further strained the supply chain and made it increasingly difficult for responsible operators to remain viable.<\/p>\n<p>\u201cHigher Love joins industry leaders in calling for balanced policies that protect consumers while allowing businesses to retain employees, serve their communities and build a sustainable future,\u201d it said.<\/p>\n<p>DeSana\u2019s new <a href=\"https:\/\/www.legislature.mi.gov\/Bills\/Bill?ObjectName=2026-HB-6224\" target=\"_blank\" rel=\"noopener\">bill<\/a>, HB 6224, is only a sentence long, simply reading, \u201cThe comprehensive road funding tax act, 2025 PA 23, MCL 205.901 to 205.913, is repealed.\u201d<\/p>\n<p>It has been referred to the House Appropriations Committee.<\/p>\n<p>Meanwhile, earlier this year, the Michigan Cannabis Regulatory Agency announced it is distributing nearly <a href=\"https:\/\/www.marijuanamoment.net\/michigan-officials-are-sending-nearly-100-million-in-marijuana-tax-money-to-local-government-and-tribes\/\" target=\"_blank\" rel=\"nofollow noopener\">$100 million in marijuana tax revenue to over 300 local governments and tribes<\/a> across the state. The money is intended to support various local infrastructure, education and other programs and services in 313 municipalities, counties and tribal areas.<\/p>\n<p>The post <a href=\"https:\/\/www.marijuanamoment.net\/michigan-gop-lawmaker-seeks-to-repeal-marijuana-tax-increase-as-rising-costs-cause-businesses-to-close\/\" target=\"_blank\" rel=\"nofollow noopener\">Michigan GOP Lawmaker Seeks To Repeal Marijuana Tax Increase As Rising Costs Cause Businesses To Close<\/a> appeared first on <a href=\"https:\/\/www.marijuanamoment.net\" target=\"_blank\" rel=\"nofollow noopener\">Marijuana Moment<\/a>.<\/p>\n<p>&#013;<br \/>\n&#013;<br \/>\nRead More: <a href=\"https:\/\/www.marijuanamoment.net\/michigan-gop-lawmaker-seeks-to-repeal-marijuana-tax-increase-as-rising-costs-cause-businesses-to-close\/\" target=\"_blank\" rel=\"nofollow noopener\">Michigan GOP Lawmaker Seeks To Repeal Marijuana Tax Increase As Rising Costs Cause Businesses To Close<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Michigan Republican representative has filed legislation that would reverse a recently enacted tax increase on marijuana businesses. The new bill, from Rep. James DeSana (R) would repeal the 24 percent wholesale cannabis tax that was enacted as part of legislation negotiated by Gov. Gretchen Whitmer (D) and House and<span class=\"more-link\"><a href=\"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2026\/08\/11\/michigan-gop-lawmaker-seeks-to-repeal-marijuana-tax-increase-as-rising-costs-cause-businesses-to-close\/\">Continue Reading<\/a><\/span><\/p>\n","protected":false},"author":459,"featured_media":86617,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18,81],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/86616"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/459"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=86616"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/86616\/revisions"}],"predecessor-version":[{"id":86618,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/86616\/revisions\/86618"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media\/86617"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=86616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=86616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=86616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}