Section 12 & 13
This act shall be known and may be cited as the Michigan Regulation and Taxation of Marihuana Act.
MICHIGAN REGULATION AND TAXATION OF MARIHUANA ACT (EXCERPT)
Initiated Law 1 of 2018
333.27962 Deduction of certain expenses from income.
Sec. 12.
In computing net income for marihuana establishments, deductions from state taxes are allowed for all the ordinary and necessary expenses paid or incurred during the taxable year in carrying out a trade or business.
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333.27963 Imposition of excise tax.
Sec. 13.
1. In addition to all other taxes, an excise tax is imposed on each marihuana retailer and on each marihuana microbusiness at the rate of 10% of the sales price for marihuana sold or otherwise transferred to anyone other than a marihuana establishment.
2. Except as otherwise provided by a rule promulgated by the department of treasury, a product subject to the tax imposed by this section may not be bundled in a single transaction with a product or service that is not subject to the tax imposed by this section.
3. The department of treasury shall administer the taxes imposed under this act and may promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to MCL 24.328, that prescribe a method and manner for payment of the tax to ensure proper tax collection under this act.
History: 2018, Initiated Law 1, Eff. Dec. 6, 2018
Compiler’s Notes: This new act was proposed by initiative petition pursuant to Const. 1963, art 2, section 9. The proposed language was certified to the legislature on April 26, 2018 with the 40-day consideration period lapsing on June 5, 2018. The initiative petition was submitted to the voters as proposal 18-1 at the November 6, 2018 general election where it was approved 2,356,422 for and 1,859,675 against.
© 2017 Legislative Council, State of Michigan
Regulations and Laws may be updated without notice or changes on this page. Please check here for current laws and any updates. http://legislature.mi.gov/doc.aspx?mcl-Initiated-Law-1-of-2018
