Michigan Governor Signs Bill Allowing Marijuana Agreements With Tribes While Exempting Them From Taxes

Legislation allowing Michigan to enter into marijuana agreements with Indian tribes while exempting them from the state’s marijuana excise tax has been signed into law by Governor Gretchen Whitmer.

Governor Whitmer signed Senate Bill 180 into law today. The proposal, filed by Senator Roger Hauck, were passed by the House of Representatives 90 to 15 and they passed the Senate 29 to 9.

The proposed laws allow “the Cannabis Regulatory Agency (CRA) to enter into an agreement with an Indian tribe pertaining to marijuana related business”, and it specifies “that sales of marijuana by a tribal marijuana business on Indian lands would be exempt from the State’s 10% excise tax on marijuana.”

According to its official legislative summary, Senate Bill 180 would amend the Michigan Regulation and Taxation of Marihuana Act(MRTMA) to do the following:

  • Allow the Cannabis Regulatory Agency (CRA) to enter into an agreement with an Indian
    tribe pertaining to marijuana related business if the agreement and the Indian tribe met
    certain conditions.
  • Prohibit the CRA from employing any individual with pecuniary interests in tribal
    marijuana.
  • Specify that sales of marijuana by a tribal marijuana business on Indian lands would be
    exempt from the State’s 10% excise tax on marijuana.

The governor also signed Senate Bill 179, filed in tandem with Senate Bill 180, which would “Allocate a portion of the unexpended balance of the Marihuana Regulation Fund to an Indian tribe for certain sales of marijuana attributable to a marijuana retailer or microbusiness located in that tribe’s Indian lands.”

You can find the full text of Senate Bill 180 by clicking here, and you can find the full text of Senate bill 179 by clicking here.

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