Representatives of Michigan's cannabis industry plan to appeal a Michigan Court of Claims decision to leave in place a pending 24% wholesale tax on cannabis. 

"We don't believe the Court of Claims made the right call," said Rose Tantraphol, spokesperson for the Michigan Cannabis Industry Association. "While we are deeply frustrated by this ruling, I can tell you this: The fight is far from over." 

The association represents more than 400 cannabis producers across the state. 

Michigan's retail cannabis industry boomed in the years after voters approved a ballot issue in 2018 allowing recreational use among adults age 21 and older. Local cities and townships can restrict or prohibit the establishment of cannabis businesses within their jurisdiction, and many did just that as the laws took effect. In the communities where retail cannabis business is allowed, the market can be competitive. 

The new tax, set to take effect on Jan. 1, was part of Michigan's fiscal year 2026 state budget, which passed in October. The wholesale tax of 24% on marijuana sales as growers and processors ship to distributors is meant to help fund road repairs, generating an estimated $420 million in new revenue toward an annual $1.8 billion road budget. 

Less than 24 hours after Michigan Gov. Gretchen Whitmer signed the pending tax into law, the Michigan Cannabis Industry Association filed its lawsuit. The legal action hoped to strike the tax in its entirety. 

While the pending tax is not directed at retail sales, dispensary customers already pay a 6% sales tax, along with a 10% excise tax on marijuana products. 

The above video first aired on Oct. 9, 2025.