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A Michigan Republican representative has filed legislation that would reverse a recently enacted tax increase on marijuana businesses.

The new bill, from Rep. James DeSana (R) would repeal the 24 percent wholesale cannabis tax that was enacted as part of legislation negotiated by Gov. Gretchen Whitmer (D) and House and Senate leaders last year.

The tax was projected by state officials to raise $420 million, with the revenue aimed at funding road repairs and construction.

The levy has been challenged in court through lawsuits filed by the cannabis industry.

“It’s time to repeal this failed tax and stop forcing taxpayers and businesses to pay for a policy that simply isn’t working,” DeSana told WNEM-TV

The GOP lawmaker said the tax is generating in less than half of what its supporters anticipated—falling roughly $70 million less in the first four months of the fiscal year, which could rise to a $210 million shortfall from projections, he told the local news outlet.

Removing the new wholesale tax would ease the fiscal burden on legal cannabis businesses and help them compete with the unregulated market, he argues.

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To that point, the company Higher Love Cannabis Co. on Monday announced it will be suspending operations at five of its nine dispensaries, citing the “mounting tax burden” on marijuana businesses in the state and specifically calling out the new wholesale tax, which it said “introduced another substantial cost in a market already subject to a 10% retail excise tax and 6% sales tax.”

“This decision comes amid broader pressure across Michigan’s cannabis industry, where oversupply, price compression and declining revenue have already forced numerous businesses to consolidate, suspend operations facilities and eliminate jobs,” Higher Love said in a press release. “The added tax burden has further strained the supply chain and made it increasingly difficult for responsible operators to remain viable.

“Higher Love joins industry leaders in calling for balanced policies that protect consumers while allowing businesses to retain employees, serve their communities and build a sustainable future,” it said.

DeSana’s new bill, HB 6224, is only a sentence long, simply reading, “The comprehensive road funding tax act, 2025 PA 23, MCL 205.901 to 205.913, is repealed.”

It has been referred to the House Appropriations Committee.

Meanwhile, earlier this year, the Michigan Cannabis Regulatory Agency announced it is distributing nearly $100 million in marijuana tax revenue to over 300 local governments and tribes across the state. The money is intended to support various local infrastructure, education and other programs and services in 313 municipalities, counties and tribal areas.

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Marijuana sales are increasing as purchases of alcohol are declining, according to a new federal report from the Canadian government.

Retailers in the country sold C$5.5 billion worth of legal recreational cannabis products in the fiscal year ending March 31, 2025, Statistics Canada reported, representing a 6.1 percent increase from the previous annual period.

Meanwhile, alcohol purchases were down 1.6 percent year over year, a dip that occurred despite a 1.6 increase in retail alcohol prices. The resulting decline in government revenue “was the largest annual decrease since Statistics Canada began tracking this series in 2004/2005,” the federal agency said.

While the C$25.8 billion worth of alcoholic beverages sold in the fiscal year still outpaces marijuana’s total, the two data points represent a trend where consumers are switching away from beer, wine and liquor toward cannabis, which is increasingly viewed as a safer alternative.

Even as marijuana sales in Canada increased in the last fiscal year, growth slowed, however, from the 11.6 percent increase in 2023-2024 and the 15.8 percent bump from 2022-2023. Still, the overall rise in cannabis purchase totals came even as prices dropped 1.1 percent over the last year.

Within the cannabis sector, inhaled extracts were the fastest growing product category in the most recent year, the government report, which was noted earlier by ICBC, said.

“The market share of inhaled extracts continued to increase in 2024/2025, up to almost one-third of total sales (31.1%),” it said. “Solid cannabis edibles (-2.2%) was the lone cannabis category with a sales decline in 2024/2025.”

Overall, cannabis sales during the fiscal year were equivalent to C$167 per person of legal age to consume marijuana.

A separate recent study funded by the Canadian government found that alcohol and tobacco cause far more harms to people who consume them, and to society overall, than marijuana does.

The findings about relative harms of different substances may help explain why alcohol consumption has been gradually declining over recent years, and why multiple surveys and studies have indicated that more adults are opting for marijuana.

For example, recent polling shows that younger Americans are increasingly using cannabis-infused beverages as a substitute for alcohol—with one in three millennials and Gen Z workers choosing THC drinks over booze for after-work activities like happy hours.

Another survey released last October found that a majority of Americans believe marijuana represents a “healthier option” than alcohol. And most also expect cannabis to be legal in all 50 states within the next five years.

Smoking marijuana is also associated with “significantly” reduced rates of alcohol consumption, according to a recent federally funded study that involved adults smoking joints in a makeshift bar.

A study published in 2024 that looked at adults who drink cannabis-infused beverages found more evidence of a “substitution effect,” with a significant majority of participants reporting reduced alcohol use after incorporating cannabinoid drinks into their routines.

Meanwhile, as the Trump administration considers moving marijuana out of Schedule I, the most restrictive category under U.S. federal law, another recent study concluded that cannabis isn’t as dangerous as its current classification would suggest.

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