While lawmakers and people who like smooth roads may be celebrating a newly negotiated state budget, pot shop owners may not be too happy about having to pay the price. These store owners say they may see their profits go up in smoke if they’re forced to pay the state’s proposed 24% tax on marijuana. Michigan currently has a 6% state sales tax and a 10% excise tax on the product.

Lion Labs in Lansing sells cannabis products like joints and edibles, and Eric Root, the business’s Chief Operating Officer, says the tax increase will force them to pass along those costs to customers. He adds that he was shocked by the proposal, and that this could raise the price of weed and ultimately hurt their sales.

Root says one-third of the state’s marijuana sales come from Illinois, Ohio, and Wisconsin, and adds that with the increase, it could cause many out-of-staters to not visit the state for weed.

“As sales go down, that will impact all levels of the cannabis industry. All segments, whether it’s a retailer, a processor, or a cultivator, we’ll see that impact their business,” said Root.

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