New marijuana tax in Michigan sparks concern among dispensaries and customers alike – WPBN
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by Alli Baxter
The new year could bring higher prices at your local cannabis dispensary. Statewide marijuana groups blame it on a new wholesale tax on marijuana sales. (WPBN)
NORTHERN MICHIGAN (WPBN/WGTU) — The new year could bring higher prices at your local cannabis dispensary.
Statewide marijuana groups blame it on a new wholesale tax on marijuana sales.
Right now, Michigan has the second lowest marijuana prices in any state. But this new tax would make Michigan's taxes on marijuana some of the highest in the country.
Even on New Year’s Eve, it feels like rush hour at Interlochen Alternative Health in Grand Traverse County.
Despite dicey road conditions, customers made the commute in to stock up on their favorite products.
Starting January 1, a new 24% tax on marijuana sales went into effect.
“[It’s] what they call a wholesale tax, which means it originates with either the grower or the processor,” Interlochen Alternative Health Owner Steve Ezell said. “Processors are the people that make products like cartridges, or vape cartridges, and edibles and whatnot. So, it originates with them as they sell to people like us retail.”
Ezell said that tax gets passed along to them, and in turn it gets passed to the customer.
“I mean, it's inevitable. You know, there's no other way,” Ezell said. “And we don't like it. And we think it's excessive.”
Ezell said he's not opposed to a tax, but the 24% seems excessive.
He fears it will discourage customers from turning to a dispensary for product.
“It seems like they're extracting every dime they can out of the industry,” Ezell said
The tax is being implemented as part of the state's road funding tax act.
So far, Ezell said they've seen more concern from their customers about how this will impact their local shop.
“We have no control over what the state's going to do and how they're going to roll out this program,’ Ezell said. “So we just kind of survive as long as we can.”
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