Michigan marijuana industry files second lawsuit over 24% tax

Lansing — Michigan’s marijuana industry has filed a second lawsuit challenging a 24% wholesale tax passed into law last year, arguing the taxing structure set up by the state compounds the levies on marijuana and overinflates a state sales tax constitutionally required to stay at or below 6%.

The lawsuit, filed by marijuana grower Mitten Distro X LLC, retailer Refine Michigan Co. and the Michigan Cannabis Industry Association, was filed Friday in the Michigan Court of Claims.

“When you do the math, the state’s 24% wholesale tax on cannabis simply doesn’t add up for the Michigan voters who made cannabis legal,” said Rose Tantraphol, a spokeswoman for the Michigan Cannabis Industry Association.

The lawsuit is the second filed by the Michigan Cannabis Industry Association in the wake of the Legislature’s vote last year to impose a 24% sales tax on marijuana, a fee lawmakers estimated would generate about $420 million for roads annually.

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https://www.detroitnews.com/story/news/politics/2026/03/30/marijuana-groups-escalate-fight-against-michigan-tax-structure/89387683007/

Here’s the filing

 

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