Michigan Governor Signs 24% Cannabis Wholesale Tax Into Law; Lawsuit Filed | How to buy Skittles Moonrock online

Crain’s Detroit Business and FOX 17 reported.

The 22-page suit filed in the Michigan Court of Claims argues that the new tax is unconstitutional because the state Legislature failed to gain a three-fourths vote required to change citizen-initiated statutes. Michigan voters legalized adult-use cannabis with a 56% majority in the November 2018 election.

The voter-approved initiative implemented the Michigan Regulation and Taxation of Marihuana Act (MRTMA) to govern a commercial marketplace for adult-use cannabis businesses.

“The lawsuit details multiple ways in which the legislators acted unconstitutionally in the passage of this tax,” according to an MiCIA statement. “Notably, Article 2, Section 9 of the Michigan Constitution requires a three-quarters vote, rather than a simple majority vote, to amend any law enacted by citizen initiative, as was the Michigan Regulation and Taxation of Marihuana Act, which passed on the 2018 election ballot. The lawsuit details how the last-minute, late-night process occurred in violation of a range of other constitutional provisions. The association is asking the court to strike the tax in its entirety.”

MiCIA argues in the lawsuit that MRTMA set the cannabis excise tax rate at 10% at retail, and that the new 24% wholesale tax signed by Whitmer constitutes a new excise tax that’s specific to the industry.

“While other taxes may generally apply to marihuana, such as the sales tax, MRTMA is the exclusive mechanism for imposing excise taxes,” according to the lawsuit. “Legislative authority over marihuana excise taxes is exclusive to MRTMA; no other statute may intrude upon or duplicate the marihuana excise tax. Thus, additional excise taxes require a direct amendment to MRTMA itself.”

The plaintiff argues that the 24% wholesale tax legislation that state lawmakers sent to the governor pulled statutory definitions for cannabis program terms directly from MRTMA, meaning the Michigan Department of Treasury must specifically rely on MRTMA to implement and enforce the new tax.

Leading up to the 2018 election, when Whitmer was elected governor, Michigan Public asked the then-candidate what she would do to ensure a successful rollout of an adult-use program if both she were elected and voters passed MRTMA.

Whitmer voted in favor of the initiative.

“Our leaders frequently ignore the will of the public,” she said. “That happened on medicinal marijuana; They … never wanted to make it successful, and so they did not promulgate rules to ensure that it was and that the rule of the people was respected. And that’s why, when this passes, I will take it very seriously and push forward to make sure that we do it right, so that it stays out of the hands of kids, to ensure that the dollars actually go where they’re supposed to go, into our infrastructure and our schools.”

The revenue from the 10% cannabis excise tax that voters approved in 2018 was dedicated to implementing an adult-use program, clinical trials, schools, roads and municipalities where licensed businesses operate.