A Michigan Court of Claims judge won’t block a new wholesale tax on recreational cannabis from taking effect January First.
Judge Sima Patel held the cannabis industry is not likely to prevail in its challenge. The industry’s argument is that the Legislature could not adopt the new marijuana tax without supermajority votes because it changes a voter-approved initiative. The state argues the new tax is a separate law adopted for the purpose of funding roads.
Rose Tantraphol is with the Michigan Cannabis Industry Association. She says many businesses will be forced to close by a new that violates the intent of voters who legalized recreational marijuana in 2018.
“We plan a swift appeal. Our legal team is conducting a thorough review of the decision to determine precisely how we will proceed.”
The challenge will likely make it to the Michigan Supreme Court.
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