(Photo credit: Bill Clark/CQ Roll Call).
Michigan Republican gubernatorial nominee John James says he will seek to repeal or sharply reduce the state’s 24% marijuana wholesale tax if elected governor, making the levy a central part of a broader cannabis policy platform released August 19.
The wholesale tax took effect January 1 and is imposed in addition to Michigan’s existing 10% marijuana excise tax and 6% sales tax. Revenue from the new levy is intended to help fund road and infrastructure spending.
James argues the added tax burden could raise prices in the licensed market and make unregulated marijuana businesses more competitive.
His pledge comes as Michigan lawmakers have introduced separate legislation this year seeking to eliminate the wholesale tax.
James’ broader marijuana platform also calls for stepped-up enforcement against unlicensed operators while reducing regulations he considers unnecessarily burdensome for businesses that comply with state law.
He said the Cannabis Regulatory Agency should be given additional tools to pursue illegal operators, with enforcement focused on unlicensed cultivation and sales, tax evasion, product diversion and sales to minors.
James said “Michigan voters approved a legal, regulated cannabis market in 2018. State government has a responsibility to respect that decision while promoting workplace and community safety, keeping intoxicating products out of the hands of children, protecting consumers, and enforcing the law against those who refuse to follow it.”
James also wants tighter enforcement against intoxicating cannabinoid products sold outside Michigan’s licensed marijuana system, specifically pointing to delta-8 THC, THCA and synthetic cannabinoids.
“Intoxicating products belong in the regulated market, not next to the candy bars,” James said.
Michigan has regulated THC products through the Cannabis Regulatory Agency since changes implemented in 2021, meaning products such as delta-8 THC generally must be produced and sold through the state-licensed system.
James said that if elected, his administration would seek to protect licensed marijuana businesses from illegal competition while increasing enforcement against operators that sell intoxicating products outside the regulated market.
