A Michigan Republican lawmaker has announced plans to introduce legislation that would suspend the state’s 24% wholesale marijuana tax for 12 months, allowing lawmakers to reassess its impact on businesses and state revenue.
State Representative Jay DeBoyer (R) announced the proposal last week, arguing that the tax has failed to generate the revenue originally projected and is placing additional financial pressure on licensed marijuana businesses. The proposed suspension would temporarily eliminate the wholesale levy while legislators evaluate whether changes to the tax are necessary.
Michigan’s 24% wholesale marijuana tax took effect January 1 as part of a broader road funding package signed into law by Gov. Gretchen Whitmer (D) in October 2025. The tax applies to certain sales and transfers of recreational marijuana to licensed retailers and is imposed in addition to the state’s existing 10% retail marijuana excise tax and 6% sales tax.
State officials originally projected the wholesale tax would generate approximately $420 million annually for road and infrastructure improvements. However, collections during the first several months fell substantially below expectations, raising questions about whether the tax can deliver the anticipated funding.
DeBoyer, who supported the broader road funding legislation, said he had concerns about the marijuana tax from the beginning. He argues that the additional financial burden is making it harder for licensed businesses to compete with unregulated sellers.
“This pause is needed to reevaluate the future effectiveness of the tax,” DeBoyer said.
The proposal comes amid broader efforts to reverse Michigan’s wholesale marijuana tax. House Bill 6224, introduced in July by State Representative James DeSana (R), would repeal the Comprehensive Road Funding Tax Act entirely, while Republican gubernatorial nominee John James has pledged to repeal or significantly reduce the levy if elected.
Unlike those proposals, DeBoyer’s plan would establish a temporary suspension rather than permanently eliminate the tax. His office said the legislation will be formally introduced and referred to a House committee, but no bill number or introduction date has been announced.
For now, the 24% tax remains in effect, with the Michigan Department of Treasury continuing to administer collections under the existing law.
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