LANSING, Mich. — A Republican lawmaker has filed a bill to stop Michigan from collecting its new 24% wholesale tax on marijuana for 12 months, reopening a fight over a levy that was written to help pay for road repairs.
State Rep. Jay DeBoyer, who is also his party’s nominee for lieutenant governor, formally introduced the measure Wednesday. It would keep the tax from being levied for one year. The bill now heads to a House committee for hearings.
The wholesale tax took effect in January as part of the road funding deal approved by the Legislature and signed by Gov. Gretchen Whitmer. It sits on top of the 10% excise tax and 6% sales tax that recreational buyers already pay at the register.
The money has fallen short. Treasury figures show the tax brought in $34 million in its first four months, roughly $70 million below the approximately $104 million analysts had expected for that span. State officials had projected about $420 million a year from the levy.
DeBoyer argues the tax was rushed, lacks an agency to enforce collection and pushes buyers toward the illegal market. The state cannabis industry trade group backs a pause, saying licensed shops need time to stabilize.
Road builders see it differently. The state infrastructure and transportation contractors association warns that cutting dedicated revenue would mean slower repairs and less work for construction crews.
The tax is also a campaign issue days before the Nov. 3 election. Republican governor nominee John James has promised to repeal or sharply cut it, while Democratic nominee Jocelyn Benson has said more data is needed before changing it. A separate Republican bill would repeal the tax outright, and industry groups have challenged it in court.
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