LANSING, Mich — A proposed 24% wholesale tax on marijuana could drive customers to the black market, according to a Lansing cannabis business owner.
- The proposed state budget agreement includes a 24% wholesale tax on marijuana dedicated to road funding.
- Local dispensary owners worry the tax will increase prices for consumers.
- The marijuana tax is expected to raise $420 million for Michigan roads.
Henry Meyer, who owns Fortuo Premium Cannabis on the southside of Lansing, believes the tax increase will ultimately hurt legitimate businesses.
WATCH: Lansing cannabis shop owner speaks out against proposed marijuana tax
"I think by raising the taxes in the real market, all you're really doing is pushing people back into the black market," Meyer said.
The state legislature's proposed budget agreement, released Thursday night, includes a plan to dedicate marijuana tax revenue to fixing Michigan's roads.
"The marijuana raises $420 million," State House Speaker Matt Hall said.
Meyer first spoke with State Capitol reporter Alonna Johnson back in February when the idea of a 32% wholesale tax was originally proposed. At that time, he was firmly against it.
"Here, we'd be against it," Meyer said at the time.
Now that there's a clearer picture of what the tax would look like, Meyer says his thoughts haven't changed. He's particularly concerned about how the tax will affect pricing.
"If I'm buying any bulk flower, and a lot of people are, I have to add 24%. Somebody's got to eat that. It's not going to be the business owner. It's going to be the customer," Meyer said.
If the tax is approved, Meyer says smaller dispensaries like his will be forced to make tough financial decisions like cutting staff. Despite these challenges, he remains optimistic about his business's future.
"We're not going to let this decision hurt us or make us cry either," Meyer said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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