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Falling marijuana revenue and the fight over Michigan’s new cannabis tax

Michigan capitol building with marijuana in the background
A bipartisan group of lawmakers is pushing to repeal the state’s new, controversial 24% wholesale marijuana tax, even as the cannabis industry challenges it in court. An update on all things weed in Michigan.

Michigan’s legal marijuana sales dropped significantly at the start of 2026, and that’s raising concerns about declining tax revenue for local communities.

On this week’s It’s Just Politics, Crain’s Detroit Business’ senior reporter Dustin Walsh joins Zoe Clark and Rick Pluta to explain what may be driving the slump - from winter weather and market saturation to Michigan’s controversial new 24% wholesale marijuana tax.

Walsh also brings us up to speed on the political fight over the new tax, including legislation that would repeal it. Plus, Walsh explains the ongoing legal challenge to the new tax and what it could mean for the industry’s future.

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Zoe Clark is Michigan Public's Associate General Manager and Political Director. In these roles, Clark guides coverage of the state Capitol, elections, and policy debates. She hosts the weekly show It's Just Politics. As Associate General Manager, she helps to guide Michigan Public’s strategic direction, content vision, and cross-platform integration.
Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987.