Michigan cannabis businesses tell House panel proposed wholesale tax and strict enforcement could cripple industry and local revenue

At a Thursday morning hearing of the Michigan House Appropriations Committee subcommittee on License and Regulatory Affairs and Insurance and Financial Services, township officials, cannabis attorneys and business owners told lawmakers a proposed wholesale tax, continued heavy enforcement and other regulatory costs threaten the state’s licensed marijuana industry and the local revenue it provides.

The witnesses said the industry has delivered jobs, repurposed blighted buildings and supplied substantial local revenue, but that oversupply, aggressive fines, limited banking and federal tax rules leave businesses financially fragile. They urged lawmakers to avoid additional taxes or burdens that could push commerce back to the illicit market.

Glenn Rowley, supervisor of Bangor Township, told the panel his community embraced licensed cannabis after voters approved medical marijuana, and that the local tax and permit revenue helped stabilize a township perilously close to state receivership. “These are business professionals. Now is not the time to impose new taxes or fees on them,” Rowley said, adding his township received…