Several days into the new 24% exercise tax on adult-use marijuana transactions, Sanford’s LaCannaville and Coleman’s Emerald Fire Farms haven’t yet raised prices, since they are still using pre-taxed stock.

“We are definitely seeing customers nervous about everyday products going up,” said Emerald Fire Farms Vice President of Operations Kate Hauck.

Yet, Hauck and LaCannaville Owner Sue LaBonville know changes are coming in the next four to six weeks, when they order more products that will chart the new tax.

The 24% tax, which went into effect on Jan. 1, aims to generate $420 million annually for the state. It tacks onto products already, including a 10% retail excise tax and 6% state sales tax, The newest tax is dedicated to the Neighborhood Road Fund for local road and bridge repairs as part of Gov. Gretchen Whitmer’s “Fix the Damn Roads” initiative.

According to a Facebook clip, unhappy wholesalers are planning to itemize the tax, suggesting names like “Whitmer Tax,” “Greedy Gretchen Tax,” and “Scapegoat Tax.”

“The tax increase may slow business. It’s too early to know for sure,” LaBonville said.

She said Michigan sports the lowest cannabis prices in the nation and it has been dropping for the past few years. An ounce of flower cost $419 on average in December 2019 – and less than $60 in December 2025.

LaBonville said Michigan customers once spent “much more” for products, yet the market continued to grow.

“So, it’s complicated,” she added.

Prior to the impending price hike, people were at the stores’ doors ready to stock up.

“People were trying to buy in advance,” LaBonville said. “We bought as much as we could in advance, but because transporters were so overloaded, we didn’t get all the shipments we had on order.”

Hauck said Emerald Fire’s traffic was the same the first week of January as it was the first week of December at both its Coleman and West Branch stores.

“We haven’t seen much of an impact yet,” Hauck said. “I anticipate the total traffic will stay around the same. But there’s no ifs, ands or buts, we expect sales to slow.”

Hauck doesn’t expect people are going to quit their daily cannabis habit, but does think the tax will lessen their purchases.

Customers won’t see much of a price hike on Emerald Fire Farms’ own cannabis products. They are a vertically integrated company, meaning they control multiple stages of their own supply chain, from raw materials to final sales and cutting costs. Thus, they have more control over the cost they buy the product for and then sell it to themselves for. Hauck said the tax is still levied, but the wholesale amounts are negotiable.

For her part, LaBonville suspects some customers will leave the stores.

“I think some people will turn to black market flower to save money,” she said. “But I say that with a cautionary reminder that black market is not tested and regulated and there are some bad players out there.”

Area law enforcement is mindful of the tax increase. Midland Police Department Public Relations Officer Brennon Warren said it’s too early to tell how the significant price increase will impact the area, but he expects a possible uptick in person-to-person sales.

LaBonville said if revenue does indeed go down, then expenses will have to follow.

“There is absolutely no profit margin left in the Michigan market to allow wholesalers or retailers to take the 24% hit,” she said. “It just isn’t there. The industry is struggling.

“This is a big hit,” she said.

Tereasa Nims is the public safety reporter for the Midland Daily News. Contact her at Tereasa.Nims@hearstnp.com