LANSING – Michigan cannabis sales continued its monthly decline in February down 4.7 percent for adult-use to $241.3 million, after a January decline to $247.3 million from December sales of $264.7 million. Medical sales fell  to just $632,500.

Oversupply continues to drive down prices the Cannabis Regulatory Agency said in its monthly sales report.   Earlier this month,  Quality Roots of Birmingham opened its first  New Jersey dispensary, just the latest in a string of Michigan cannabis companies looking to other states for growth.

Despite declining sales, Gov. Whitmer is proposing levying a 32 percent wholesale tax on the sale of adult-use marijuana products to fix Michigan’s roads by adding about $3 billion in additional infrastructure funding each year without commuters paying more. Implementing a new marijuana wholesale tax, similar to cigarette taxes, would generate about $470 million.

The industry is currently exempt from the tax thanks to a “loophole,” according to the governor’s office. Michigan cannabis companies are worried yet another tax on top of the 16 percent already charged by the Treasury Department would implode an industry that generates more than $3 billion annually and employs close to 40,000 Michigan residents.

If you want to read the full Cannabis Regulatory Agency monthly report, click here.