A Michigan House committee has given approval to legislation that would allow the state to enter into agreements with Indian tribes while exempting them from the state’s marijuana excise tax.
The House Committee On Regulatory Reform passed Senate Bill 180 today without amendment, moving it towards a vote by the full House of Representatives. The measure was approved by the Senate in June by a vote of 29 to 9.
Filed by Republican Senator Roger Hauck along with six Democrat cosponsors, the proposal would “allow the Cannabis Regulatory Agency (CRA) to enter into an agreement with an Indian tribe pertaining to marijuana related business”, and would “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.”
If the measure is passed by the House, it will be sent to Governor Gretchen Whitmer for consideration.
In Michigan marijuana was legalized in 2018 via the passage of Proposal 18-1. The law does not address businesses owned by tribes and operated on tribal land.
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.
You can find the full text of Senate Bill 180 by clicking here.
