On Sept. 9, Bridge Michigan reported Michigan's 24% wholesale marijuana tax raised $73.4 million in its first six months, short of a $420 million yearly projection

Michigan's 24% wholesale marijuana tax generated $73.4 million in its first six months, according to state budget officials, Bridge Michigan reported on Sept. 9, 2026. The House Fiscal Agency had projected the tax would bring in $420 million a year to help fix Michigan roads, and the six-month total was below even revised estimates, the outlet reported. According to the Michigan Department of Treasury, the tax applies to the wholesale price of certain sales or transfers of adult-use marijuana beginning Jan. 1, 2026, and its revenue is deposited into the neighborhood road fund for infrastructure improvements.

WJR reported on Sept. 2, citing Crain's Detroit Business and the state's monthly financial report, that the tax generated $37.38 million in the second quarter of 2026, slightly up from $34 million in the first quarter, compared with a projected $105 million a quarter. WJR reported that the $73.4 million collected so far compared with an estimated $315 million for the 2026 fiscal year.

The wholesale tax is separate from the state's 10% retail excise tax and was part of a bipartisan road funding deal signed by Gov. Gretchen Whitmer, Bridge Michigan reported. Republican gubernatorial nominee John James has proposed to "repeal or sharply reduce" the tax, arguing it "drives up prices, gives illegal operators a competitive edge and has already fallen far short of revenue projections," according to Bridge Michigan. Democratic nominee Jocelyn Benson had not taken a firm stance, calling it a "new and emerging issue" and saying "we need to know where the money is going and also the impact that it's had on the industry," the outlet reported. Bridge Michigan also reported that an industry group is suing to try to block the tax, arguing it violates the will of voters who legalized marijuana in 2018.

Road agencies have warned about losing the money. WILX reported on Aug. 13 that state Rep. James DeSana had introduced a bill to eliminate the tax, citing revenue data showing it had fallen short of projections. Denise Donahue, CEO of the County Road Association of Michigan, told the station that the unmet need for roads is "somewhere around $2.3 billion" a year, and Jim Patton of the Ingham County Road Department said eliminating the marijuana tax revenue could prevent departments from advancing projects, according to WILX.

Later developments: According to the Michigan Legislature's website, House Bill 6224, introduced by DeSana on July 29, was referred to the House Committee on Appropriations, and Senate Bill 810, introduced by Sen. Jonathan Lindsey on Feb. 26 with seven cosponsors, was referred to the Senate Committee on Government Operations. Neither bill showed further action as of Oct. 17, 2026. No court ruling striking down the tax was found as of Oct. 17, 2026.

This report summarizes published reporting and official records and is not legal or tax advice.