DETROIT – Smokers may have to spend a little more to keep that spark going when it comes to marijuana if a certain bill passes in Michigan.
“This tax right here that they’re trying to impose is gonna shake up the whole industry,” said Rock Jordan of 23 thumbs.
“To put this tax on us as a consumer when we already generate more revenue than the alcohol industry is ridiculous,” said Richard Fleming of Altered State Cannabis.
House Bill 4951 is a proposal that would place a 24% wholesale tax on Michigan’s cannabis industry.
We’re talking about businesses, jobs, equity licensees, all rolled up into one, with the money going towards highway repairs.
That’s on top of the 16% tax they’re already paying, which would add up to a whopping 40%.
“Six percent sales tax and 10 percent inside tax, so that’s for percent,” said DCIA founder Stuart Carter.
Wednesday’s (Oct. 1) meeting was about why Michigan shouldn’t go that route.
“I actually kinda love the people that work for me, and I would hate to have to let them go. But if these taxes come, that’s just the reality of the situation,” said Mark Snipes of West Coast Meds.
Members of Detroit’s Cannabis Industry Association, otherwise known as the DCIA, held a press conference discussing the high potential that there would be a negative impact.
They say smaller businesses may not be able to withstand another serious blow and would probably go out of business.
“If we are forced to cut back, there’ll be layoffs and those people, those hourly workers, will be the first to go, unfortunately,” Carter said.
The burning question now is whether this bill will pass all the way.
Right now, it’s been referred to the committee of the whole.
However, Local 4 is closely monitoring developments to see what happens beyond that point.