The latest numbers from the Michigan Department of Treasury are calling into question the state’s new 24% wholesale tax on marijuana.

The Michigan Cannabis Industry Association says the state collected just under $34 million from the tax during the first quarter of 2026. The new tax was forecast to generate about $315 million for the fiscal year, suggesting cannabis tax revenue is far lower than expected when the new tax was approved by lawmakers.

The association’s Robin Schneider says the tax was promoted as a key funding source for road repairs but has instead led to declining cannabis sales, business closures, layoffs, and reduced revenue for local governments.

The association says it warned lawmakers the additional tax would reduce sales and hurt businesses operating on thin profit margins. It’s supporting several efforts to overturn the tax, including legislation from state Senator Jonathan Lindsey that would repeal it.

The group is also pursuing two lawsuits against the tax.

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