Michigan built something worth protecting.
Over the last few years, this state became one of the most affordable legal cannabis markets in the country. Prices dropped. Selection got better. Shopping legal stopped feeling like a compromise. For consumers, that was a real win — and it didn’t happen by accident. It happened because Michigan’s market stayed competitive, locally driven, and focused on value.
That’s now under pressure.
What Changed on January 1
At the start of 2026, Michigan’s state government added a 24% wholesale tax on cannabis — on top of the 10% retail excise tax and 6% sales tax that already existed. The wholesale tax is applied before products even reach the shelf, meaning it hits every step of the supply chain before it ever reaches you.
The result: higher costs for growers, processors, and retailers. And in most cases, those costs get passed to the customer.
Michigan cannabis sales dropped to their lowest point since 2022 in the months following the tax. Some consumers moved away from legal dispensaries entirely. That’s exactly what happens when legal cannabis stops being the obvious, affordable choice.
Where The Refinery Stands
We’re not going to sit quietly while a tax structure chips away at something Michigan consumers worked hard to build access to.
The Refinery has joined industry efforts to challenge this tax through the legal system. The Michigan Cannabis Industry Association has filed multiple legal challenges arguing the tax creates what’s called “tax pyramiding” — layering a wholesale tax on top of existing retail and sales taxes in a way that effectively pushes the total consumer tax burden above the 6% constitutional limit. In other words, the structure isn’t just aggressive — it may be unconstitutional.
Legal challenges are currently working through the courts, with a trial date set for September 2026.
Why This Matters to You
If you buy cannabis in Michigan, this fight is yours too.
Michigan’s low prices weren’t a gift from legislators — they were the result of a competitive, independent market doing what it’s supposed to do. The wholesale tax doesn’t just hurt businesses. It raises costs on everyday purchases, pushes price-conscious shoppers toward unregulated sources, and undermines the legal market that Michigan voters chose in 2018.
The Refinery has always been locally owned and operated. We’re not a chain. We don’t have the margins to absorb indefinite tax increases quietly and move on. What we have is the willingness to push back — and to be transparent with our customers about why.
What Happens Next
The first lawsuit goes to trial in September 2026. We’ll keep you updated as this develops.
In the meantime, we’re doing everything we can to keep prices where they should be. Check today’s deals at your nearest Refinery location: