Tri-City Sun

State Representative Timmy Beson has voiced his concerns over a proposed 24% wholesale excise tax on marijuana, included in a recent budget agreement passed by the Michigan House. While acknowledging positive aspects of the budget, particularly increased funding for schools, Beson criticized the new tax measure.

“There are many good things in this budget agreement that will help workers and families in our state, and I voted for the school budget which has record per-pupil funding to support our students. But this specific tax increase to help fund roads is detrimental to many small businesses in the district I represent and across the state. We should be seeking to grow independent businesses in Michigan, not destroy them," Beson said.

He expressed concern about how the tax would impact small growers: “Farmers are price takers, not price setters. Forcing them to absorb this tax will destroy small growers. If there is going to be a tax at all, we should apply it at the retail level where prices are set and apply any tax equally to all marijuana retail licenses, instead of creating carveouts that will provide unfair advantages for companies that control every step of their supply chain.”

Beson also pointed out alternatives previously used by lawmakers: “We demonstrated earlier this year that we could get more money to local road agencies without raising taxes on anyone. If this is not fixed, a sizable number of the state’s cannabis industry will shut down within a short time. Because of this, I could not support this agreement.”

The proposed excise tax is intended as part of an effort to raise funds for road improvements across Michigan.