News Staff Writer

kwikaryasz@thealpenanews.com

News Photo by Kayla Wikaryasz
Merlin Pardike, left, Julia Dault, middle, and Nicholas Anderson, right, are seen holding cannabis products available for purchase at Neighborhood Provisions. Beginning on Jan. 1, 2026, cannabis retailers will be charged an extra 24% on top of a 10% excise tax.

ALPENA — Local recreational marijuana retailers say the tax hike on wholesale cannabis approved by lawmakers in Lansing early Friday morning could force consumers to pay more for the drug.

Michigan House Bill 4951 installs a 24% wholesale tax on top of the current 10% excise tax and 6% sales tax. The wholesale tax will begin on Jan. 1.

The revenue from the increased tax for businesses who sell marijuana will help pay for road and other infrastructure improvements.

The bill was passed by both the House of Representatives and the Senate, and is currently waiting for a signature by Governor Gretchen Whitmer. Whitmer said on Friday that she intends to approve the proposed budget.

Kevin Currier, owner of Neighborhood Provisions, said “I don’t see any good coming out of this,” regarding the passed legislation.

“This is a burden on the people,” Currier said. “The customer feels it with their wallet.”

Currier said that the increased tax is going to be reflected in costs to purchase recreational cannabis, and cause a ripple effect in the industry.

The first effect he said Michigan residents will see is on the local level. He said that though the state may see an initial increase in state tax revenue, customers will start to make smaller transactions as the price of marijuana rises to compensate for taxes shop owners have to contend with.

Currier said this will lead to shop closures and job-loss. He added that multi-state chains of cannabis retailers have already started to leave the state.

“They have pre-emptively closed stores,” Currier said.

Currier added that the tax burden will essential limit access to recreational marijuana, incentivizing cannabis users to seek out products on the black market.

“Access is being taken away, ” Currier added. “People will get it somewhere else.”

Currier explained that the shift to black market cannabis could lead to store closures, as well, as more consumers choose to procure products via non-legal retailers.

He cited other ramifications to the tax hike as advocacy groups potentially pursue litigation against the state and a decrease in cannabis tourism. Currier added that cannabis tourism has been a growing phenomenon in recent years.

“Tourists will overlook us,” Currier said.

Currier added that the passage of HB 4951 is indicative of an initiative for Michigan lawmakers to target a “vulnerable industry,” as cannabis retailers are not federally protected.

He explained that when the sale of medical and recreational marijuana was legalized in Michigan in 2018, the cannabis industry expected “financial support” as well as political support from Michigan lawmakers. Currier stated he believes HB 4951 goes against the original initiatives to expand access to medical and recreational marijuana.

Parc Cannabis General Manager, Christopher Molter, said that “it’s tough to say” how the tax increase will affect the industry as the increase doesn’t take effect till the first of the year.

He said more than anything, the increase will likely affect “mom-and-pop” shops rather than chains and corporate managed retailers.

Kayla Wikaryasz can be reached at 989-358-5688 or kwikaryasz@TheAlpenaNews.com.