A Michigan Republican lawmaker has filed a bill to suspend the state’s 24% wholesale marijuana tax for one year, arguing the levy is collecting far less than projected and squeezing licensed businesses. The measure has only been introduced; it has not received a committee hearing or a vote, and the tax remains in effect.
What the bill would do
State Rep. Jay DeBoyer, who is also the Republican nominee for lieutenant governor, announced the proposal in late October 2026 and filed it the week of October 26, according to Marijuana Moment. Local station WNEM reported the bill as House Bill 6440. Under the proposal, the tax would not be “levied or imposed” for 12 months. DeBoyer has described it as a temporary pause rather than a permanent repeal.
DeBoyer’s stated reasons, as reported, are that the tax was passed quickly, that it is bringing in less money than expected, and that it pushes consumers toward the illicit market and burdens compliant operators.
How the tax works
- Rate: 24% wholesale tax on certain sales and transfers of recreational marijuana to licensed retailers.
- Enacted: October 2025 as part of a road funding package signed by Gov. Gretchen Whitmer, a Democrat.
- Effective: January 1, 2026.
- Stacks with other taxes: It applies on top of the existing 10% retail excise tax and 6% sales tax, according to The Marijuana Herald.
- Purpose: Road and bridge repair funding.
For comparison with other states, see our guide to cannabis tax rates by state.
The revenue gap
The tax was projected to raise about $420 million a year, roughly $105 million per quarter, based on a nonpartisan House Fiscal Agency analysis. A June 2026 report found the state had collected about $34 million from January through the end of April, roughly one-third or less of the projection.
That report quoted Robin Schneider of the Michigan Cannabis Industry Association saying elected leaders made the industry “a sacrificial lamb” for a road funding fix. A Cannabis Regulatory Agency spokesman, David Harns, said investigations into illicit market activity are generally a trailing indicator. We did not find newer official collection totals while preparing this article, so the figures above may be out of date.
Who supports and opposes a pause
- Supporters: The Michigan Cannabis Industry Association has praised the bill. A separate bill, HB 6224 from Rep. James DeSana, would repeal the Comprehensive Road Funding Tax Act entirely.
- Opponents: Lance Binoniemi of the Michigan Infrastructure & Transportation Association told WNEM that road conditions would keep worsening if the revenue is cut.
- Politics: Republican gubernatorial nominee John James has pledged to repeal or sharply reduce the tax. Democratic nominee Jocelyn Benson has called it a new and emerging issue that needs more data. Democratic Sen. Jeff Irwin criticized both Republican candidates’ records on cannabis.
What happens next
The bill must be referred to a House committee, receive a hearing, and pass both chambers and the governor’s signature to take effect. Michigan’s general election is November 3, and the next governor and legislature may shape whether the tax is paused, reduced, or kept. The industry has also challenged the tax in court.
For consumers, the tax is paid by licensed businesses at the wholesale level and may be reflected in shelf prices; a pause would not automatically lower prices. For background on how Michigan fits into the wider market, see our explainer on where cannabis is legal in 2026.
Sources
- Marijuana Moment: Michigan GOP lieutenant governor candidate files bill
- WNEM: Proposed legislation would freeze Michigan’s wholesale cannabis tax
- The Marijuana Herald: Michigan Republican to introduce bill
- Michigan wholesale marijuana tax revenue lags far below projections (June 2026)
