UPPER MICHIGAN (WLUC) – As a part of the state budget, marijuana dispensaries are now facing a 24% tax between them and producers.

Michigan dispensaries will now have to pay for an additional tax on top of the 10% excise tax. The new wholesale tax targets marijuana sales between growers and dispensaries. The money from this new tax will go toward roads across the state.

In a statement, Fire Station Cannabis Company Chief Marketing Officer Kelsey Potes says:

“Michigan’s roads absolutely need attention. No one would argue that. The concern is less about why the money is needed, and more about where it’s coming from. It’s disappointing that an industry still finding its footing is being asked to shoulder that cost.”

Upper Michigan dispensaries like Dealz Cannabis will have to shoulder the cost too. Maxwell Mraz is a partner for Dealz in Crystal Falls.

He says price hikes are expected across the board from many businesses.

“To offset the cost, currently what has been spoken throughout the industry is we’re going to see a general price hike everywhere,” Mraz said. “An item that was normally $100 before tax is going to be $140 with tax versus what is currently $116.”

Mraz says if he had the chance to speak to lawmakers, he would tell them to take a step back and see what the downsides of this decision could be.

“We’re going to see a lot of these smaller companies, especially your cultivators and producers, we’re going to see a lot of them close, leave people off, acquisitions happening until it’s probably only a handful of companies, unfortunately, that are going to be able to purchase from,” Mraz said.

Both Mraz and Potes express the goal is to still protect affordability and accessibility for consumers.

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