The Wholesale Marihuana Tax (Pot for Potholes)

Pot for Potholes for Roads you can’t Drive On.

Key Points of RAB 2026‑3 (Wholesale Marihuana Tax)

What This Bulletin Does

• Explains Michigan’s new 24% excise tax on wholesale sales or transfers of adult‑use marihuana under the Comprehensive Road Funding Tax Act (CRFTA).
• Clarifies who pays, when the tax applies, how the tax base is calculated, and how returns must be filed.

When the 24% Wholesale Tax Applies

The tax applies beginning January 1, 2026 to:

• The first sale or transfer of adult‑use marihuana from a licensed marihuana establishment (grower, processor, etc.) to a retail licensee.
• Seed‑to‑sale microbusinesses when they package product for retail sale.
• Transfers from medical provisioning centers to adult‑use retail licensees.
• Not applicable when either party is a qualifying tribal marihuana business with an approved agreement.

The tax is imposed once, at the first wholesale transaction to a retailer—preventing double taxation.

Determining When a Sale Occurs

• A sale occurs when ownership transfers, based on contract terms or, absent an agreement, upon delivery.
• CRA’s tracking system does not determine tax timing; tax timing is based on ownership transfer, not regulatory reporting.

How the Tax Base Is Calculated

A. Transactions Between Affiliated Persons

• Tax is based on “average wholesale price” published quarterly by Treasury.

• Used for:

  • Affiliated wholesalers and retailers

  • Seed‑to‑sale microbusinesses

  • Provisioning‑center‑to‑retail transfers

• Treasury calculates average prices using CRA retail data from the prior three months.

B. Transactions Between Non‑Affiliated Persons

• Tax is based on the actual price paid, including:

  • Shipping charges

  • Fees integral to acquiring the product

• Excludes:

  • Non‑marihuana items on the invoice

  • Bona fide service fees (if documented and reasonable)

• Prohibited discounts (volume discounts, partner discounts, exclusivity deals) cannot reduce the taxable price.

C. Wholesale Tax Does Not Tax the Tax

• “Any tax” included in the wholesale price does not include the wholesale tax itself.

Filing & Remittance

• Treasury sets the required forms, methods, and procedures for filing.
• Taxpayers must file quarterly wholesale tax returns and maintain adequate documentation.

Who Pays the Tax?

• The wholesaler (the marihuana establishment making the first sale/transfer) is legally responsible for calculating, paying, and remitting the tax.

• They may pass the tax through to the retailer, but remain liable even if the retailer never pays.

• No bad‑debt deduction is allowed.

Q: LOL – Who pays the Tax?
A: You

Q: Whose name will be on the legislature that enacted this
A: The People (So you are part of the CCE and Conspiricy)

Q: Who really voted for this?
A: Nobody

Don’t Forget Marijuana is still Illegal and you can be charged with CCE, Conspiricy and all the other Old Public Health Codes. You can also be charged federally.

FAQs

Q: What is the new Michigan wholesale marihuana tax?

A: It is a 24% excise tax applied to the first wholesale sale or transfer of adult‑use marihuana to a retail licensee beginning January 1, 2026.

Q: Who is responsible for paying and remitting the 24% tax?

A: The wholesaler making the first sale or transfer is legally responsible for calculating and remitting the tax, even if they pass the cost through to the retailer.

Q: How is the taxable price determined for affiliated transactions?

A: Affiliated wholesalers and retailers must use Treasury’s published “average wholesale price,” updated quarterly using CRA retail data.

Q: What counts toward the taxable price in non‑affiliated transactions?

A: The actual price paid, including shipping and acquisition‑related fees, but excluding bona fide service fees and non‑marihuana items.

Q: Does the wholesale tax apply in addition to other marihuana taxes?

A: Yes. The 24% wholesale tax is separate from and in addition to the 10% MRTMA retail excise tax and the 6% Michigan sales tax.

Fraud Fatigued?

• 24% tax on weed
• 52 cents per gallon tax
• fraud
• more fraud
• more fraud
• more fraud
• more fraud
• Detroit judge, 3 others charged in alleged scheme to steal thousands from vulnerable and incapacitated people 
• Ex- (Who cares Red or Blue) Party treasurer charged with embezzling from vulnerable adult
• and more fraud
• Tax Tax Tax 

• MSN-Desperate Kathy Hochul begs wealthy New Yorkers to come back 

• California’s ‘Bridge to Nowhere’ has cost you $77M so far — but expert says that’s just the start

Here’s something else

• The WasteWatcher (Citizens Against Government Waste)
• Michigan gets a new state budget: Winners, losers in the $81B deal

As always… Follow the money.

More Posts