Michigan lawmakers have voted to add a 24% tax on wholesale marijuana sales to help pay for road repairs.
The plan, called the Comprehensive Road Funding Tax Act (House Bill 4951), passed the state House 78–21 with support from both Republicans and Democrats.
If the bill becomes law, the new tax would start January 1, 2026 and is expected to bring in about $420 million a year.
The money would flow to the Neighborhood Road Fund for local roads and bridges, with some directed to other state road projects. Lawmakers say this is part of a broader $1.5–$1.8 billion annual boost to road funding from multiple sources, including this new tax.
But marijuana businesses warn the move could hurt the legal market. Michigan already has a 10% retail excise tax on cannabis. Adding a 24% wholesale tax would bring the total marijuana-specific tax to about 34%, one of the highest in the country.
Dispensary owners say they would likely have to raise prices, since wholesalers and retailers usually pass new costs down to customers. They warn this could drive buyers back to the illegal market or push away out-of-state customers who currently shop in Michigan for cheaper cannabis.
The bill still needs to pass the Senate and be signed by Governor Gretchen Whitmer
