Cannabis dispensaries worry about tax increase
LANSING, Mich.(WLNS)— Cannabis dispensaries are frustrated with Governor Whitmer's proposed road tax plan.
Last month, Governor Whitmer announced a new 3 billion dollar road repair plan that would lead to a tax increase on pot.
The proposal puts a 32% tax hike on marijuana.
Pot retail workers at The Cake in Lansing told 6 News that this plan could severely affect the industry in the long run.
Evie Hernandez, General Manager at The Cake, says the proposal could also affect their sales.
'This is going to make it harder for us to stay profitable,' said Hernandez. 'In turn, we're going to have to raise our prices, which will then hurt the consumers and us.'
Tasha Brickley, an employee, says the tax would heavily affect businesses across the state.
'This is definitely going to affect the small businesses,' said Brickley. 'You know, we're already struggling as is in this economy, and if you wanna add an extra 32%. It's not good for everybody involved in this community.'
Michigan already has a 10% excise tax, plus a 6% sales tax.
Brickley says that's already way too much, and raising the tax to 32% would be excessive.
'You're coming in here. You're already paying that 6%. You're adding the 10%; you're already at 16%,' said Brickley. 'That's already a huge amount coming off of when someone spends $5, you know? That's 16% coming off of $5.'
Hernandez agrees.
'Jumping this,' said Hernandez. 'It's gonna rock the boat huge, and not in a good way.'
She says if they raise their prices, customers would resort to buying their weed from off the streets.
'With everything getting pushed back to the Black Market. It's gonna make it harder for us to get investments from everybody else,' said Hernandez. 'Which will then help the industry grow.'
The proposal would help repair the roads, but Tyrsha Washington, an employee at The Cake, says she still has questions.
'The roads are not even getting fixed. You know?' said Washington. 'Where's all the 16% we getting charged going to anyway?'
Brickley says she's seen no progress in road repairs.
'Weed became legal in 2010. Since then, it's 2025, and I feel like the roads have just gotten worse,' said Brickley. 'I have not seen anything get better, and that is something I would like to see. If that is the money that's going to be used towards that. We'd like to see that, and were not seeing anything.'
The plan also includes making sure every dollar Michigan drivers pay at the pumps directly goes to road repair.
As well as investing in public transit projects across the state.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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