Michigan Legislature Votes to Allow Marijuana Agreements With Indian Tribes, Exempt Them From Taxes

Michigan’s full legislature has passed a bill that will allow the state to enter into marijuana agreements with Indian tribes while exempting them from the state’s marijuana excise tax.

The Michigan House of Representatives voted 90 to 15 today to pass Senate Bill 180, a little less than four months after the measure passed the Senate 29 to 9. The proposed law will soon be sent to the desk of Governor Gretchen Whitmer, and a spokesperson for Governor Whitmer says she plans to sign the bill into law. If Governor Whitmer were to veto the bill, there is well more than enough support to override it.

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.”

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.

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