GRAND RAPIDS, Mich. — Starting in 2026, Michigan's marijuana industry is facing a new tax that has prompted customers to stock up before the increase took effect.
SEE MORE: Michigan marijuana businesses face uncertainty after new 24% wholesale tax is signed into law
A constant roll of customers visited Pharmhouse Wellness, a local marijuana dispensary in Grand Rapids, as the new tax went into effect.
"I use it for medicinal reasons. I personally, think it helps great with my appetite and my stomach issues, so I use it on a daily basis," shopper Eli Sopko said.
Sopko isn't a fan of the new 24% wholesale tax on marijuana.
"I hate the taxes. The taxes are awful. I mean, they're ridiculous," Sopko said.
Marijuana is already taxed 10% on retail sales, in addition to the 6% state sales tax.
"For the 2024 state fiscal year, there was more than $331 million available for distribution from the Marihuana Regulation Fund. Revenue from the state’s 10% adult-use marihuana excise tax and other fees go into the fund," according to the Department of Treasury.
BREAKDOWN OF DISTRIBUTION:
- 15% to municipalities and Indian tribes in which a licensed marijuana retail store or microbusiness is located.
- 15% to counties and Indian tribes in which a licensed marijuana retail store or microbusiness is located.
- 35% to the School Aid Fund to be used for K-12 education.
- 35% to the Michigan Transportation Fund to be used for the repair and maintenance of roads and bridges.
The new tax adds 24% on wholesale marijuana. The state estimates this can generate $420 million in revenue, which would go into the neighborhood road fund for infrastructure improvements.
"Past couple of days, people have been stocking up, anticipating the price increases that were that came today," Pharmhouse Wellness Assistant Manager Trent Mingerink said.
This tax is on the business side from processing to retail. For a company like Pharmhouse Wellness, it pays a tax on the marijuana it grows in it's facility next door and transfers to its retail store.
"I didn't really know what to expect, so I've been trying to figure out the new pricing," Mingerink said.
Pharmhouse Wellness has a spreadsheet to show the new prices. People who shop there are remaining loyal to the local business.
"I love this shop. I love the people that work here. I love them so much with my whole heart, shout out, Liam. The environment's great. They're really helpful, and they've got good stuff," Sopko said.
Still, there are going to be some who are watching their money.
"It'll make me buy less," shopper Zach Montag said.
