Cannabis wholesale tax lawsuit to remain in Court of Claims

By Elena Durnbaugh
Gongwer News Service
 
The Michigan Court of Appeals has denied a request to move the lawsuit regarding the 24% wholesale tax on cannabis from the Court of Claims.

Judge Adrienne Young denied the case, Michigan Cannabis Industry Association v. State of Michigan, consideration in the Court of Appeals based on failure to persuade the court of the need for immediate appellate review, the court order said.

The case will continue to move forward in the Court of Claims.

Last month, the Court of Claims ruled that the Legislature did not change the purpose of the bill and did not need a three-quarters majority to pass the tax as it was not an amendment to the Michigan Regulation and Taxation of Marihuana Act.

A third issue, regarding whether the tax violates the will of voters who approved the original 2018 law passed by voters, was left open and will be taken up at the next hearing scheduled for Feb. 10.

“While we were hoping to expedite appellate review of some of the issues by the Court of Appeals as quickly as possible given the magnitude of the impact on this tax on our members, we are still pleased that a trial based on our lawsuit moves forward in the Court of Claims,” MiCIA spokesperson Rose Tantraphol said in a statement. “We will continue to fight this 24% wholesale tax aggressively in all the avenues we have available to us.”