(LANSING) - A Michigan lawmaker is pushing to eliminate the state's new 24% wholesale tax on marijuana, arguing it is hurting businesses and jobs.
State Senator Jonathan Lindsey of Coldwater has introduced legislation to repeal the tax, which took effect January 1 as part of a road-funding plan. Lindsey says the measure represents government overreach and threatens the cannabis industry's stability.
Supporters of the tax say it could generate about $420 million annually for road repairs through a dedicated Neighborhood Road Fund. But industry groups report sales dropped sharply after the tax took effect and have challenged the law in court, claiming it improperly altered the voter-approved marijuana framework without the required supermajority.
The repeal bill has bipartisan backing and is now under review in the Senate Committee on Government Operations.