Could a New Tax Destroy Michigan’s Cannabis Industry?

Michigan’s cannabis industry has been named one of the biggest in the US, but a new proposed tax could bring that success crashing down.

Governor Gretchen Whitmer’s new “Mi Road Ahead” plan includes a massive 32% wholesale tax on marijuana, up from the current 10%. The plan aims to raise $470 million annually for road improvements, which is great until you realize it may do the opposite.

Below: 20 of Michigan's most creatively named dispensaries ⬇️

Right now, Michigan has some of the lowest cannabis prices in the country which drives people from other states to visit and enjoy what we have to offer. With an ounce averaging just $74 in 2024 (compared to $204 in 2021), we’ve built a market that benefits consumers while still generating serious tax revenue—$270 million in 2023 alone. That money supports schools, roads, and local communities.

But if this wholesale tax goes through, the cost of cannabis will skyrocket. Your previously $20 vape pen could end up costing you $27 or more, and that’s just the start.

Why does this matter? When prices go up, people start looking elsewhere—like the black market. California made this mistake with high cannabis taxes, and now illegal sales are thriving while licensed dispensaries struggle to stay open. Plus, with Ohio recently legalizing marijuana, Michigan businesses are already facing competition. Experts predict our sales could drop by 27% as more Ohio shops open after their legalization last year.

This tax not only will hurt dispensaries and growers, but it will also hit consumers in the wallet at a time when they're already facing rising prices everywhere else. And the obvious- higher prices can mean fewer jobs and, in turn, less tax revenue. This could seriously jeopardize Michigan’s cannabis industry. If you feel passionately about keeping Michigan cannabis affordable, you should reach out to your state representative.