(LANSING) - A legal challenge to Michigan's new marijuana wholesale tax will move forward after a judge rejected the state's attempt to block the case. Sima Patel of the Michigan Court of Claims denied a request from state attorneys to dismiss a lawsuit filed by the Michigan Cannabis Industry Association. The ruling allows the case to proceed. The lawsuit challenges a 24% wholesale excise tax on marijuana sales, which took effect Jan. 1 as part of the state's fiscal year 2026 budget. The cannabis industry group argues the tax is unlawful and conflicts with the intent of Michigan voters, who approved marijuana legalization in 2018.
The association contends the voter-approved framework did not authorize a wholesale-level excise tax of this size.
State officials had sought to block the case before it advanced, but Patel's ruling keeps the legal fight alive. No timeline has been announced for the next phase of the lawsuit.