“Pot for pot:” Michigan cannabis shops react to 24% wholesale tax on Marijuana

September 29, 2025

LANSING, Mich. (WILX) – In Michigan, the saying is “pot for pot” or “pot for potholes.” This is based on Governor Gretchen Whitmer’s plan to fund road projects through marijuana taxes.

In the new state budget, lawmakers are considering a proposed 24% wholesale tax on Marijuana, replacing one of the lowest Marijuana taxes in the country.

The money from the tax will be used to repair Michigan roads. The bill has been cleared in the house and is now awaiting a vote in the senate.

Cannabis shop owners, workers and consumers have been very vocal about their frustrations with the tax. And, Tasha Brickley, a budtender at The Cake House, says it isn’t their job to fund the roads.

“I don’t think it’s our responsibility to pay for the roads,” said Brickley. ” [Marijuana] was illegal to begin with, and now we have fought for it to be legal. And now they see that it is a billion-dollar industry and they want to go ahead and get their hands in it.”

Alejandro Vega is the sales director at Peninsula Gardens, a cannabis store up north. He says this tax could hurt the entire industry.

“I think a 24% sales tax on top of what we’re already paying as companies, as producers, purchasers, [and] retailers is something that will single-handedly destroy this industry,” said Vega.

He believes it would not only eliminate jobs but also hurt consumers.

“You’re probably going to be looking at a 25-50% retail increase. And that’s going to go directly to the customers,” said Vega. “So, the customer you’re going to feel it too, we’re all going to feel it.”

For Brickley, this tax feels personal. Cannabis is her career and a form of medication.

“I was automatically off the top, not ok with it, because this is a medication for me,” said Brickley.

She says, for many people, marijuana is a health necessity, and if you take that access away, people will find relief elsewhere.

“It’s going to end up back to the black market, and that’s what we don’t want to do,” said Brickley. “We have been fighting for many… years, so that the black market can go. And we can do everything that we have to legally.”

House Representative (R) Joe Aragona voted in favor of the tax, but says it was a hard vote.

“This is a lot to levy on them. What I think we’re going to be able to accomplish is a number of wins for the cannabis industry as well. So, number one is we have some bills that we’re going to be cracking down on the black market.”

A manager at House of Dank says companies would have to increase their prices to make a profit. For example, he said, if a customer spends $100, that will cost them $116 with the current 16% tax. But with the new proposed 24% tax, in addition to the 6% sales tax, a $100 order would jump to $142.

Cannabis workers and consumers will be holding a protest tomorrow from 9 a.m. to 5 p.m. at the Michigan Senate Building in Lansing. They are hoping to stop the proposed tax before the state senate passes it.

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