Michigan's recently introduced 25% wholesale tax on cannabis has brought in revenue that fell well short of where lawmakers predicted it would land.
According to the Detroit News, after the new tax was implemented last year, a nonpartisan fiscal analysis panel said the tax would bring it about $105 million a quarter and $420 million a year. But new numbers from the state's treasury department show that the tax has only brought in $34 million through the end of April.
Last year, Michigan Governor Gretchen Whitmer signed into law the 24% tax on marijuana sales between producers and dispensaries as part of an effort to fund road repairs.
"When I took office, I made a promise to fix the damn roads so Michiganders could get where they're going faster and safer," she said, according to the Associated Press.
But shortly after, The Michigan Cannabis Industry Association (MiCIA), which represents more than 400 producers in the state, promised to appeal the ruling, calling the new tax "unconstitutional."
“We don’t believe the Court of Claims made the right call,” said Rose Tantraphol, MiCIA spokesperson, in a statement. “While we are deeply frustrated by this ruling, I can tell you this: The fight is far from over. We remain confident in the strength of our case that this move by the Legislature violated the will of the voters who approved the 2018 citizen ballot initiative. We plan a swift appeal. Our legal team is conducting a thorough review of the decision to determine precisely how we will proceed.”
