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The Michigan Court of Claims upheld a new 24% tax that will be charged on marijuana products beginning on Jan. 1.
LANSING, Mich. (WJRT) – A new bill introduced in the Michigan Legislature would reverse a new 24% tax charged on wholesale marijuana products.
Lawmakers approved the tax last fall as part of budget negotiations and it took effect on Jan. 1.
A bill introduced by Republican State Sen. Jonathan Lindsey of Coldwater would revert marijuana taxes back to 10% included in the Michigan Constitutional amendment allowing for recreational sale and use of the drug.
“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,” he said.
He is concerned that the 24% tax is hurting Michigan’s growing marijuana industry and is blamed for widespread job losses.
“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,” Lindsey said.
He said the bill has “strong bipartisan support” with four Republican and three Democrat cosponsors.
“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.
Senate Bill 810 was referred to the Senate Committee on Government Operations. It would have to pass there, in the full Senate and the House before heading to Gov. Gretchen Whitmer’s desk.
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