Michigan's Cannabis Industry Faces a Steep Tax Hike

Michigan's cannabis industry is in for a rough ride as a new tax policy kicks in. Starting January 1st, a 24% wholesale tax joins the existing 10% retail tax and 6% sales tax. This means cannabis products are now hit with a total tax of 40%. This is a big deal for businesses like Green Acres Cannabis. Abbas Chami, the chief financial officer, is feeling the pinch. He says the extra cost is tough to swallow. He can't keep prices the same for customers. He has to pass some of the cost to them. He also has to absorb some of it himself. He wants to stay competitive. But with this tax, it's a challenge.The state expects to rake in an extra $420 million a year from this tax. That money will go to state infrastructure projects. But Chami isn't convinced it's a good move. He thinks the market can't handle it. He fears some businesses might not survive. The Michigan Cannabis Industry Association is fighting back. They represent over 400 cannabis producers. They've filed appeals to challenge the tax. They hope to get it struck down completely. Business owners are worried. They think the tax could lead to job losses and other problems.