LANSING, Mich. — State Sen. Jonathan Lindsey introduced legislation to eliminate the 24% wholesale tax on marijuana that was created during budget negotiations late last year.
“I opposed the new tax increase, first and foremost, because it represents an unnecessary growth of government. Lansing’s budget does not need to grow larger; we simply need better discipline. This tax will also damage Michigan businesses and lead to widespread job losses across the state, which are already being reported,” said Lindsey, R-Coldwater. “I also don’t believe that in the long term this mechanism will generate the expected revenue, especially if sales go down as a result of the increased taxes or if legal challenges against the tax prevail.”
Senate Bill 810 would repeal the new 24% wholesale tax and revert marijuana taxation to the structure set by the vote of the people.
“This is about reining in the government’s constant attempt to get just a little bit more out of people,” Lindsey said. “Lansing must realize that growing government by taxing businesses into oblivion has never been, and will never be, a way to encourage a healthy Michigan economy.
“My bill has strong bipartisan support, with four Republican co-sponsors and three Democrat co-sponsors, and I only expect support to grow as the damage of this tax becomes more obvious. I hope my colleagues don’t wait too long.”
The bill was referred to the Senate Committee on Government Operations.
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