Bill > HB5085

This bill amends the Michigan Regulation and Taxation of Marihuana Act by eliminating the existing 10% excise tax on marihuana sales and transactions, effective January 1, 2026. Specifically, the bill removes the current provision that imposes a 10% tax on marihuana sales to individuals and non-marihuana establishments, and also removes a related requirement for qualifying Indian tribes to impose a tax or fee on marihuana sales that matches or exceeds the state tax rate. The bill does not fundamentally change the definitions or overall structure of marihuana regulation in Michigan, but instead focuses narrowly on tax provisions. The changes appear to be part of ongoing refinements to Michigan's marihuana regulatory framework, potentially aimed at reducing tax burdens on the marihuana industry or aligning tax policies with evolving market conditions. The elimination of the tax will take effect at the beginning of 2026, providing advance notice to businesses and stakeholders in the marihuana industry about the upcoming change in tax policy.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5085