Signed by Governor Gretchen Whitmer

Vote Smart's Synopsis:

Vote to pass a bill that establishes the imposition, collection, and enforcement of excise taxes on certain sales of cannabis in the state of Michigan.

Highlights:

• Establishes a new excise tax to be levied and imposed on the wholesale price of the sale or other transfer of cannabis at the following rates and in the following circumstances (Sec. 5): 

• For the first sale or transfer of cannabis from the cannabis establishment to the cannabis retail licensee, a 24% excise tax is levied on the cannabis establishment of the wholesale price of the cannabis sold or transferred;

• For the sale of cannabis that is cultivated and processed for retail sale by the cannabis retail licensee, a 24% excise tax is levied on the cannabis retail licensee of the wholesale price of the cannabis that is cultivated and processed for retail sale; and

• For the sale of cannabis from a provisioning center to a cannabis retail licensee, a 24% excise tax is levied on the cannabis retail licensee of the wholesale price of cannabis sold or transferred.

• Establishes the Comprehensive Road Funding Fund within the State Treasury (Sec. 7). 

• Specifies that the revenue collected from this act must be deposited in the following manner (Sec. 13): 

• $3 million to the Comprehensive Road Funding Fund for the 2025-2026 state fiscal year; and

• $5 million to the Comprehensive Road Funding Fund for the 2026-2027 state fiscal year and each state fiscal year thereafter.

• Specifies that for the 2027-2028 state fiscal year and each state fiscal year thereafter, the State Treasurer shall adjust the amount to be deposited to the Comprehensive Road Funding Fund for inflation (Sec. 13). 

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes the imposition, collection, and enforcement of excise taxes on certain sales of cannabis in the state of Michigan.

Highlights:

• Establishes a new excise tax to be levied and imposed on the wholesale price of the sale or other transfer of cannabis at the following rates and in the following circumstances (Sec. 5): 

• For the first sale or transfer of cannabis from the cannabis establishment to the cannabis retail licensee, a 24% excise tax is levied on the cannabis establishment of the wholesale price of the cannabis sold or transferred;

• For the sale of cannabis that is cultivated and processed for retail sale by the cannabis retail licensee, a 24% excise tax is levied on the cannabis retail licensee of the wholesale price of the cannabis that is cultivated and processed for retail sale; and

• For the sale of cannabis from a provisioning center to a cannabis retail licensee, a 24% excise tax is levied on the cannabis retail licensee of the wholesale price of cannabis sold or transferred.

• Establishes the Comprehensive Road Funding Fund within the State Treasury (Sec. 7). 

• Specifies that the revenue collected from this act must be deposited in the following manner (Sec. 13): 

• $3 million to the Comprehensive Road Funding Fund for the 2025-2026 state fiscal year; and

• $5 million to the Comprehensive Road Funding Fund for the 2026-2027 state fiscal year and each state fiscal year thereafter.

• Specifies that for the 2027-2028 state fiscal year and each state fiscal year thereafter, the State Treasurer shall adjust the amount to be deposited to the Comprehensive Road Funding Fund for inflation (Sec. 13). 

Full Bill Text