Michigan's Cannabis Regulatory Agency (CRA) on December 27, 2022, released a Request for proposals (RFP) for conducting an analysis of tax reporting and regulatory compliance within the state's cannabis market.
Michigan's 2022-2023 budget requires the CRA to award a grant for a pilot program that will provide an analysis of tax reporting, collection and regulatory compliance within the the state's cannabis market. The grant provides up to $500,000 for the work.
The RFP seeks to bring in proposals from interested parties with the requisite experience and ability to:
- Provide an assessment of the current state of tax reporting, collection, and compliance by individuals and entities involved in the cannabis market.
- Identify relevant statistical information regarding unreported and underreported tax revenue from cannabis-related transactions in this state.
- Identify areas within the cannabis market in this state that demonstrate suspected inversion and diversion activities and other regulatory noncompliance.
- Recommend a plan of action for capturing past and future unreported and underreported tax revenue in the cannabis market and for targeting areas of suspected inversion and diversion activities and regulatory noncompliance for compliance and enforcement.
- Identify tax revenue from cannabis-related transactions that were previously unreported or underreported.
- Provide an estimate of the costs associated with the proposed action plans.
The deadline for proposals is February 1, 2023 and the anticipated start date for the program is March 1, 2023.
For more information, visit www.michigan.gov/cra.